East Hub and West Hub Projects in Angola, in Block 15/06.
East Hub and West Hub Projects in Angola, in Block 15/06.
Eni has been operating in Angola since 1980 and continues to enjoy some of its greatest successes in the country in terms of both exploration and production thanks to major technological investments and close collaboration with the host country. A lot of what we do in this area relates to the development of offshore oil and gas deposits, amounting to nearly 150,000 barrels of equivalent oil per day. Eni has operated Block 15/06, which lies some 350km to the north-west of Luanda and 130km west of Soyo, since 2006, with the development of the block overseen by a joint venture between Eni (36.84%), Sonangol P&P (36.84%) and SSI Fifteen Limited (26.32%). The wells are fitted with the most advanced environmental sustainability and safety systems, including systems designed to eliminate gas flaring and water discharge, and are concentrated in two major macro-areas, the West Hub and the East Hub, where we have achieved a number of major successes. in just four years we started working in eight fields, four of which were launched in 2018 alone five if the measurement is based on the calendar year. In July 2019 the ship Poseidon successfully drilled the well Agogo-2, the first appraisal well in the Agogo find. Agogo-2 is located three km north-west of Agogo-1, 180 km off the coast, at a total depth of 3,949 m. It contains a net 58 m of light oil with excellent petrophysical properties. This success comes after the discovery made on 3 June last year while exploring Agidigbo.
This discovery came after the March 2019 discovery, with the Agogo exploration prospect. Here, whilstdrilling nearly 180km off the coast with our Poseidon drill ship we encountered a single mineralised column of light oil. These findings demonstrate the full exploratory potential of Block 15/06 As an example, in May 2019 we discovered Ndungu, which is estimated to contain up to 250 million barrels of light oil on site and the site could also have further potential. The Ndungu 1 NFW,well, just a few kilometres from Eni's West Hub offshore facility, was also drilled using the Poseidon drill ship. This was the fourth made, with the exploration campaign on the part of the Block 15/06 joint venture resuming in mid-2018. An intense data collection campaign revealed that the well had a production capacity of over 10,000 barrels of oil per day.
Even data tells the story of our activities in Angola. A continuous growth in value.
Oil production in Block 15/06, Eni’s first project in the country, began in November 2014. The project involves operations in 8 fieldsthrough 42 wells: 24 production and 18 water-injection wells. There are two FPSO units stationed in the area - Ngoma and Olombendo. Production in the Vandumbu field began in November 2018 - three months ahead of schedule. Also in Vandumbu, a new well, VAN-102, was opened in January 2019, taking production to nearly 13,000 barrels. a further step towards the complete development of the field, scheduled during the first four months of 2019 when the water-injection well will be opened. In addition, March 2018 saw the opening of the Ochigufu, field, with a potential production plateau of 25,000 barrels per day. All in all, Block 15/06 produces 170,000 barrels a day. This is possible thanks our excellent teamwork and the use of next-generation technology like the Subsea Multiphase Boosting System (SMBS), typical of the pioneering technology with which we have been associated for many years.
SMBS is the Subsea Multiphase Boosting System built and installed in deep water by Eni. One of only a few worldwide, it is the first of its kind for Eni. From design to production, this innovation has challenged our technicians, and has confirmed Eni's ability to develop new technology for increasingly complex situations.
After Kalimba, Afoxé, Agogo and Ndungu the new Agidigbo discovery demonstrates once again the exploration potential that the block’s deeper sequences represent. Located two kilometers from the field of Mpungi, with the West Hub facilities just ten kilometers away, the production of Agidigbo can be speeded up, and will extend the production plateau of the FPSO Armada Olombendo. This is a new discovery estimated to contain between 300 and 400 million barrels of oil and the site could also have further potential. The full potential of the discovery will be assessed by means of a mapping campaign in early 2020. This discovery followed the one that came in March 2019, when we discovered the Agogo exploration prospect and in December 2018, when we discovered the oilfield in the Afoxé exploration prospect, in the East Hub, accounting for an estimated total of between 170 and 200 million barrels of light oil in place. TheAfoxé-1 NFW well is located in the south-eastern part of Block 15/06, some 130km off the coast, 50km south-west of theFPSO Olombendo (East Hub) and 20km west of Kalimba-1. This is further confirmation of the major opportunities for value creation that exist in an area that had previously been considered of importance primarily where gas was concerned. A significant result following the discovery of Kalimba-1 in June 2018, valued at between 230 and 300 million barrels of oil. Kalimba-1 NFW is an exploration well located nearly 150km off the coast and 50km south-west of the Olombendo FPSO unit. Together, the two neighbouring reserves represent the potential for 400-500 million barrels of equivalent oil on site, forming a new cluster in their own right. An intense data collection campaign was carried out for these discoveries and revealed that there was significant production capacity. Synergies with the existing infrastructures enable discoveries to be quickly brought into production, thus significantly reducing the time-to-market. At the same time, Eni will be able to exploit all of the near-field exploration potential in the basin since exploration rights for Block 15/06 have been extended until 2020. Finally, in addition to and in keeping with our business plan, we have, as always, encouraged the direct involvement of the local population and businesses in what we do whilst at the same time promoting the creation and sharing of technical skills and expertise.
Olombendo, the floating production storage and offloading unit (FPSO) operating in the East Hub Development Project, entered into service five months ahead of schedule. Made using the latest knowledge and technologies, the ship was built in Singapore, although some parts for docking at the offshore site were made directly in Angola. The name comes from a musical wind instrument typical of the Ovimbundu Bantu ethnic group of central Angola.
Special rules were applied during the development of the West and East Hub sites, in addition to those required to comply with Angolan legislation and international best practice. The best available technology was adopted to reduce waste and atmospheric emissions to a minimum.