The Sanaga Sud field is located in the offshore Douala/Kribi-Campo basin, approximately 20 kilometers northwest of the city of Kribe. Mobil Producing Cameroon Inc. drilled the Sanaga Sud gas and condensate discovery in 1979 and appraised it in 1981 with two additional wells. There has been no subsequent drilling activity in Block MLHP-4 because of lack of markets for the discovered gas. Productive intervals for the field fall between 1,000 and 1,600 meters sub sea, in water depths of less than 20 meters. Total recoverable gas for the Sanaga Sud field is estimated to be in excess of 600 billion cubic feet, according to a 1992 paper by Mobil New Exploration Ventures Co., published by the American Association of Petroleum Geologists.
Under the terms of the agreement, Syntroleum and EurOil would each have 50% working interest in the MLHP-4 block. Each company would share equally in the cost of assessment and development of the block including field development, gas liquids extraction, gas-to-liquids conversion and/or other possible end-use applications for natural gas, including electric power generation and iron ore smelting. With support from EurOil, Syntroleum will complete a gas reserve and project assessment study for a gas-to-liquids (GTL) plant, which would be located in Cameroon to utilize gas produced from the MLHP-4 block. The first phase of this work will involve full analysis of previous data that has been developed on the block to refine assessment of estimated reserves for the field.
The two parties intend to complete the negotiation and execution of a joint operating agreement (JOA) by mid-year 2003. Assuming negotiations for the production-sharing agreement are successful, EurOil will be designated the operator of the MLHP-4 block. Syntroleum has the option to be named operator, subject to certification by the Republic of Cameroon.
"From our experience in Cameroon we concluded that the Sanaga Sud field, similar to other previously-drilled fields in West Africa, could be economically developed using Syntroleum's gas-to-liquids technology," stated Don Vandergrift, chief executive officer of EurOil. We have developed an excellent working relationship with Syntroleum and all of us are anxious to move ahead with the development of this project."
"The Sanaga Sud field in Cameroon, if converted to synthetic hydrocarbon liquids using Syntroleum's gas-to-liquids technology, could add substantial economic benefits to the country," stated Jack Holmes, Syntroleum's president and chief operating officer. "This project would demonstrate how the integration of GTL and field development could add value through the production of cost competitive liquid reserves, along with other products such as NGLs and electric power. It also represents another step in executing our recently refined strategy of using Syntroleum's gas-to-liquids technology to gain ownership of oil and gas resources."
EurOil Limited is an indigenous company registered in the Republic of Cameroon and is a 100% subsidiary of BowLeven plc, a UK company. Syntroleum Corporation is the developer and licensor of proprietary gas- to-liquids (GTL) technology for converting gas into synthetic liquid hydrocarbons. The company, in partnership with others, plans to build plants using its technology in a number of global locations.
Most Popular Articles