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French energy major Total said it had opened up a “world class†oil and gas play off the coast of South Africa following a significant discovery of condensate, likely sparking further exploration in the waters of Africa’s most developed economy.
Total said the Brulpadda prospect, located 175km off the country’s southern coast, had encountered a “significant†find in deep waters, with further 3D seismic testing planned for later this year. Consultancy Wood Mackenzie has said the prospect could hold up to 1bn barrels of oil equivalent.
“With this discovery, Total has opened a new world-class gas and oil play and is well positioned to test several follow-on prospects on the same block,†said Kevin McLachlan, senior vice-president exploration at Total.
The news of the discovery came as Total beat profit expectations in the last quarter of 2018 on record levels of oil and gas production.
Total’s net adjusted profit increased 10 per cent in the fourth quarter to $3.2bn, ahead of analyst expectations of closer to $3.1bn. Total’s full year profit jumped 28 per cent to $13.6bn. Production increased 8 per cent at 2.8m barrels a day while cash flow was up 18 per cent at $26.1bn.Â
Patrick Pouyanné, Total chief executive, said the group had benefited from the rise in the oil price to an average of $71 a barrel in 2018 compared with $54 a barrel in 2017, giving it a return on average capital employed close to 12 per cent, “the highest among the majorsâ€.
The group is aiming for $15bn to $16bn of net investments in 2019, roughly in line with 2018 and production growth above 9 per cent, compared with above 8 per cent last year.
“Overall we see this as an in-line set of numbers, and effectively the confirmation that Total continues on its growth trajectory,†said Biraj Borkhataria, an analyst at RBC.Â
Shares in the group were down 0.8 per cent in midday trading in Paris.
The Brulpadda prospect find is a boost for South Africa, which has long been reliant on oil imports to meet its domestic needs.
During the apartheid era it was largely cut off from world oil markets and needed to process coal into liquid fuels, an expensive process that has fallen out of favour in recent years.
Cyril Ramaphosa, South Africa’s president, has been pushing to drum up foreign investment in the economy after years of stagnation under Jacob Zuma, his predecessor.
Mr Ramaphosa has pledged to bring regulatory certainty for investors including mining and oil and gas companies, which suspended major investments while a massive government corruption scandal unfolded under Mr Zuma.
Mr Ramaphosa’s government has been finalising oil and gas legislation meant to unlock investment. However, he is also facing controversial decisions on energy policy including the fate of Eskom, the struggling state electricity monopoly, and the scope for renewable power projects.
Total, which is developing the area with partners including Qatar Petroleum and South African investors, returned to drilling in Brulpadda in 2018 after a four-year hiatus. The area has difficult conditions including massive waves and strong currents.
This week Gwede Mantashe, the South African mineral resources minister, said striking offshore oil and gas would be a “game changer†for the country.
Photo used under CC0 Creative Commons
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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