Agence Ecofin TikTok Agence Ecofin Youtube Agence WhatsApp

Companies

Offshore Senegal: FAR confirms commercial viability of SNE oil field, expects first oil in 2022

Thursday, 01 September 2016 10:47

(Ecofin Agency) - FAR Ltd., on Thursday announced that the Minimum Economic Field Size for a commercial development has been achieved, confirming the commercial viability of the SNE oil field offshore Senegal.This is coming a week after the company announced the SNE Contingent Resources estimates have increased by 14% to 641 Mmbbls, certified by RISC.

According to FAR, with the successful conclusion of the 2015/2016 appraisal drilling program, the project was at the pre-FEED stage (Front End Engineering and Design) and development planning was in progress.The company added that it has concluded pre-engineering studies with AMOG, an engineering consultant and has organized an SNE field concept development plan based on its increased 2C Contingent Resource estimate of 641 Mmbbls.

An independent FPSO development has been planned with topside expansion capability for future SNE field development phases and satellite tie-backs. The company’s development plan denotes a phased development approach with a peak production rate of 140,000 bopd and first oil in 2022.

FAR’s estimated cost includes a development expenditure between $13 and 15 per barrel, an operating expenditure of between $12 to 14 per barrel including FPSO lease costs as well as a development cost split: Drilling and completions 45%, Subsea 46%, Project + Other 9%.

FAR has assessed that the SNE field has surpassed the Minimum Economic Field Size and the project is at the Pre-FEED stage with development planning underway. The focus is on optimizing and scaling a first phase development project. The project is well positioned to benefit from cost deflation. Development and operating costs estimates for the concept development are relatively low, making the break-even oil price very competitive in the current oil price environment at less than US$40 per barrel. Further appraisal drilling expected to start in late 2016 will target understanding the connectivity of the upper reservoirs and help optimize and scale the development,” Cath Norman (photo), FAR’s Managing Director, told Energy-pedia.

Cairn Energy is the operator of the SNE field with a 40% interest, alongside ConocoPhillips, FAR and Petrosen with 35%, 15%, 10% interests respectively.

Anita Fatunji

 
Finance


 
Mining


 
Telecom


 
Public Management


ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

AGENCE ECOFIN
Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

EDITORIAL TEAM
redaction@agenceecofin.com

ADVERTISING SALES
Benjamin FLAUX
bf@agenceecofin.com
Tél: +41 22 301 96 11
Mob: +41 78 699 13 72

 

Please publish modules in offcanvas position.