(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