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Weekly UpdatesWith a 2006 moratorium on EPSAs in the North Field likely to remain in place until 2014, Doha is focusing its efforts on other areas. But the Emir, Shaikh Hamad bin Khalifa al-Thani, could make an exception in favour of the US/EU-backed Nabucco gas project (see news9TurkNabucco&HuT-Aug31-09). In early 2006, Doha said it wanted to give specialised engineers time to do detailed studies of the North Field structures, which in 2005 were expected to be ready before end-2010; but these have been delayed by the need of more comprehensive surveys.
The main thrust of the country's oil and gas E&P activity is currently focused on pre-Khuff Fms located outside the North Field. These include deep-water blocks being offered under 25-year EPSAs.
In March 2009, QP combined two of its deep-water B & C gas areas into a single one, called Block-B-C, in an effort to attract more interest from IOCs. This is close to QP's existing oilfields Bul Hanine and Maydan Mazhan. The bidders for the EPSA have included some of the country's main IOC operators: Maersk, Wintershall of Germany and Total of France.
GdF Suez of France in mid-2009 bought 60% in deep-water Block-4 from Anadarko Petroleum of the US and became the operator. GdF has since begun exploration work on this EPSA area, covering 3,279 sq km. The block, which Anadarko got in May 2004 for a five-year exploration programme with a 100% interest, has several prospects. Anadarko retains 40% in this.
Qatar Petroleum Int'l (QPI), the overseas arm of QP, had signed a JV agreement with GdF Suez in January 2008 covering international co-operation in E&P, LNG and downstream gas projects (see gmt11QatrGasExpSep14-09).
Anadarko sold its majority stakes in offshore Blocks-12&13 to Occidental Petroleum (Oxy) of the US for $350m in May 2007. Anadarko had acquired them from BP in 2002 with its stake in them having been 92.5%, with Marubeni Corp of Japan still holding 7.5% in the two blocks which it had acquired from OMV of Austria in 2005 (see the background in gmt9QatrGeoAug27-07). In Block-12, al-Rayyan oilfield went on stream in November 1996 and now can produce 70,000 b/d. Anadarko had been exploring Block-13 since late 2003. Anadarko still has 29.5% in offshore Block-11, covering 9,000 sq km. Block-11, at the southern edge of the North Field near Ras Laffan, is operated by Wintershall (41%), which is the 100%-owned E&P arm of Germany's petrochemicals giant BASF. Wintershall got Block-11 in 2000 and its other partner in this is Cosmo Energy Exploration and Development Ltd of Japan with 29.5%.
On Nov. 17, 2008, Wintershall got a 25-year EPSA for deep-water Block-4N. The BASF unit, based in Kassel, is Germany's largest oil and gas producer. Block-4N has a Khuff reservoir and is near the North Field. Wintershall, which holds 100% in this, on Nov. 17 said the existing seismic data were to be reprocessed and interpreted and within two it was to acquire additional seismic data, with the first two exploration wells to be drilled by 2010. Depending on the results of the intensive exploration campaign, Wintershall would develop a discovery through further drilling, and subsequently produce natural gas and condensate.
At the Nov. 17 signing ceremony with Qatari Deputy PM and Minister of Energy and Industry, Abdullah al-Attiyah, who is QP's chairman, Wintershall Chairman Reinier Zwitserloot said: "we are now very pleased to be able to expand our exploration activities in this strategic region. Block 4Nis a very promising exploration target and fits very nicely with our existing portfolio in Qatar. We are working very constructively and successfully with the Qatar government and[QP]. This success represents a milestone in our engagement in Qatar and the entire Middle East". Block-4N is near Wintershall's Block-11.
Block-4N was the first of four deep-water gas blocks which QP was tendering to IOCs. While several large oil companies declined to submit bids, most of the firms with existing operations and exploration work in Qatar have lodged bids. The three other gas areas to be tendered include another off the north coast and two blocks off the east coast
Wintershall in 2007 got an EPSA for Block-3, in which it holds 40%. The other partners in this venture are Cosmo (35%) and Indonesia's PT Pertamina (Persero) with 25%. Seismic surveys are being done in this area, which covers 1,666 km2. Two exploration wells are planned in 2010.
QP in 2008 pre-qualified at least 10 IOCs for deep-water Block-A, near Maersk's producing al-Shaheen oilfield. QP then said the level of interest from IOCs in that pre-Khuff round was to be strong, despite doubts over the prospectivity of their reservoirs. At considerable depths, the blocks will be gas prone, but QP was also seeking to boost its oil production capacity.
Talisman of Canada is exploring Block-10, 3,200 sq km in shallow waters between al-Khaleej and al-Shaheen oilfields and relinquished by Total after poor findings. Talisman got this December 2002, when it was committed to spend $30m on reprocessing seismic data, new seismic studies and drilling of three wells during an initial five-year exploration period.
Block-14, offered in 2005, has received renewed attention. Lying on the border between Qatar and Saudi Arabia, it is in an area which has been frequently drilled but where there has been little success. The perception remains that it is not prospective.
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