Orca Exploration Group has successfully completed its offshore workover and drilling program, of the Songo Songo main field development, offshore Tanzania.
The workover and drilling program at Songo Songo included workovers on three existing wells (SS-5, SS-7 and SS-9) and the drilling of one new development well, SS-12. Phase 1 of the development program also includes the completion of the SS-12 production platform, flowlines and tie-in facilities connecting SS-12 to the company's gas processing facilities and a refrigeration system required to ensure field production stability to enable the company to produce wells into the newly built National Natural Gas Infrastructure Project (NNGIP).
The completion also resulted in the release of the Paragon M826 mobile drilling workover jackup rig.
The total cost of Phase 1 of the development program was originally estimated to cost US$120 million, however, now that the program has been completed, Orca expects that Phase 1 of the development program to have a total cost of under $80 million with costs incurred to date of approximately $68 million. The reduction in costs was a result of being able to successfully workover the three wells without having to do any side-tracking, efficiencies achieved during the work-overs, and work scope changes which reduced the original estimated time required to complete Phase 1. The full development program provides for additional workovers, compression systems and additional infrastructure to ensure all production commitments are met through to the end of the license in 2026.
Orca’s program was designed to: put safe existing suspended and operating production wells; restore and increase the current productive capacity of the Songo Songo main field to ensure the continued delivery of protected and additional gas into the existing Songa’s infrastructure; and provide additional operational redundancy and deliverability for future additional gas sales.
The program has successfully increased production capacity from approximately 83 MMcf/d prior to the development program to current production capabilities of approximately 150 MMcf/d. Upon completion of the platform for SS-12 and the tie-in to production facilities, production capabilities are expected to be in excess of 185 MMcf/d. The field is now capable of both filling the existing Songas infrastructure to capacity of approximately 102 MMcf/d, as well as providing additional gas volumes to the NNGIP.
Orca is currently negotiating terms for the sales agreement to the NNGIP with the Tanzania Production and Development Co. (TPDC). Until the agreement is signed, the Orca’s production is limited by infrastructure and contractual constraints, producing an average of 90 MMcf/d for Q4 2015 and is expected to average 94 MMcf/d in 2016.
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