WTI (Dec) $82.31 -$3.23, Brent (Dec) 87.45 -$3.03, Diff -$5.14 +22c
USNG (Dec) $3.35 -13c, UKNG (Dec)* 135.5p +3.5p, TTF (Dec)8 €51.65 -€2.05
*November contract expiry

Oil price

Oil fell as although the ground offensive in Gaza continues but in the meantime the Fed meeting today and tomorrow continues to unnerve the market. In the US retail gasoline prices continue to fall, down 6 cents on the week and a full 32.5c on the month at $3.473.

Chariot

Chariot has announced that it has received approval for its Environmental Impact Assessment from the Moroccan Ministry of Energy Transition and Sustainable Development on the Anchois gas development project offshore Morocco.

·      The EIA process for Anchois was conducted over a 12 month period and was informed by:

o  onshore and offshore environmental and social baseline surveys

o  an open and transparent stakeholder engagement programme held in conjunction with relevant parties  

o  a public enquiry process which spanned four local provinces

·      The final report sets out the requisite planning, mitigation and monitoring measures to follow during construction and production

·      The EIA integrates recommendations from the National Environmental Committee, is valid for five years and covers all aspects of the development including future wells and offshore infrastructure, the onshore Central Process Facility and link to the GME pipeline.

Pierre Raillard, Head of Gas Business and Morocco Country Director at Chariot commented: 
“Securing approval of this EIA is a major milestone for Anchois and is the culmination of extensive time and teamwork that has gone into this critical process. This is a key building block for sanctioning the project’s development, alongside other activities such as our partnering process which is close to conclusion. On behalf of Chariot, I would like to thank the National Environmental Committee and the Ministry for their endorsement and support. I would also like to thank the Chariot team, our partner ONHYM and our consultants who collaborated so closely across all workstreams. We are fully committed to ensuring that Anchois is developed in line with best practice as set out in the report.“

EIA approval for the Anchois project is indeed  massively important for Chariot as it provides the vital permission to go ahead with this key project and perhaps more importantly further de-risks the ongoing development. Indeed, on this front the partnering discussions are continuing but there is a heavy nod here in the words ‘close to conclusion’. 

We know from presentations at the Morocco Summit last week that activity in country is moving on at a good pace across the board, see my blog from Friday where I comment on the onshore drilling programme which is on schedule. Indeed on the fact that Eni are drilling the Cinnamon-1 well offshore which in the event of success provide another spotlight on the country.

My long term Target Price for Chariot, which includes the renewables business across Africa’s mining business remains at 100p.

Serica Energy

Serica has announced the award of a 100% interest in UK  block 29/2a to its wholly owned subsidiary Tailwind Energy Chinook Limited in the UKCS 33rd Offshore Licensing Round. The award is subject to the execution of licence documentation.

Block 29/2a contains the decommissioned Kyle oil field. This field ceased production in June 2020 and the host FPSO at the time was subsequently removed. Serica will have no obligations in respect of the prior decommissioning as a result of the licence award. During an initial two-year licence period, Serica will carry out studies to determine the feasibility of re-developing the Kyle field by means of a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities. Serica has a 46.42% interest in the Triton FPSO vessel and a 64.63% interest in the Bittern field. Both are operated by Dana Petroleum. Serica’s internal preliminary mid-case estimate of recoverable resources from the redeveloped field is about 9 million barrels of oil.      

Mitch Flegg, Chief Executive of Serica commented:
“A key aspect of Serica’s strategy is maximising the utilisation of existing infrastructure associated with its Bruce and Triton production hubs. An important element of this is adding hydrocarbon throughput from new sources as well as enhancing the contribution from fields that are already producing. This licence award adds another potential project to our hopper of near- and in-field opportunities. The decision whether to proceed with the re-development of Kyle will depend on the results of our studies and the fiscal and regulatory situation at the end of the initial two-year term of the Licence.”

Serica have been awarded Block 29/2a in the 33rd UKCS licensing round, it contains the decommissioned Kyle oil field and it is clear that after a bit of TLC from Mitch and the team be a tie-back to the Triton FPSO, very smart move…

SDX Energy

SDX is pleased to announce the completion of testing operations on the KSR-21 well in Morocco. The well, targeting a prospect within the Hoot formation, was drilled to a total vertical depth of 1,955 meters. The well test resulted in a flow rate of approximately 4 MMcf/d (on 1/4 inch choke) during the test period.

SDX is the sole independent gas producer in Morocco and works closely with its partner, Office National des Hydrocarbures et des Mines, on all aspects of development and production. The gas from SDX’s wells is sold to multiple offtakers in the Kenitra industrial area.

No comment from SDX on this seemingly good well result and a no-show in Morocco last week, lot’s going on at SDX I imagine…

KeyFacts Energy Industry Directory: Malcy's Blog