Mobil Announces Plans for Increasing Equatorial Guinea Production
5 August 1998
Mobil Announces Plans for Increasing Equatorial Guinea Production
FAIRFAX, Va.--Aug. 5, 1998--Mobil Corp. announced Wednesday its plans for increasing production from the company's operations in Block B offshore Equatorial Guinea.The announcement coincides with the start of the 1998 exploration drilling program in Block B with four wildcat wells expected to be drilled before the end of the year. An additional drilling rig, the 'Percy Johns', has recently arrived. Previous exploration drilling in Block B has yielded seven commercial oil discoveries out of sixteen wildcat wells.
In addition to exploration drilling, Mobil and its partner Ocean Energy are increasing the production capacity of their Zafiro operations from the current design level of 80,000 barrels per day (June production averaged 86,000 barrels per day -- Mobil net share 53,000 barrels per day) to approximately 120,000 barrels per day in the year 2000.
Total development spending for wells and facilities through 2000 is forecast at $900 million. The 1998 development spending plan was approved by the Government of Equatorial Guinea in conjunction with the revised production sharing contract, announced in March.
"Our plans for production growth are good news for Equatorial Guinea, just as it is for Mobil and our partner Ocean Energy," said M. W. Scoggins, president, International Exploration and Producing, Mobil Corp.
"For the country, it is a significant step towards the production growth which the Government needs to help it address the many social and economic problems faced by its people. For Mobil, it confirms the success of our partnership to date with Equatorial Guinea, re-affirms our desire to build a successful business in this country and contributes to the company's worldwide goal of profitably increasing production."
Planned facilities include a fixed drilling and production platform installed in the Zafiro area and the addition of gas lift and water injection facilities to the existing 'Zafiro Producer' floating production, storage and offloading vessel (FPSO). Water injection facilities are almost complete and should be operational within a month. Gas lift facilities will be completed in early 1999.
The Zafiro field was discovered in March 1995. A fast-track development plan enabled Mobil to achieve first production just eighteen months later, in August 1996. Seven subsea wells drilled in 1996 (phase one development) enabled production to reach just under 30,000 barrels per day. During 1997, the second phase of development involved drilling and completion of nine more wells, increasing the production capacity of Zafiro to 80,000 barrels per day.
Mobil, as operator, holds a 71.25 percent stake in Block B. Ocean Energy holds a 23.75 percent stake and the Government of Equatorial Guinea holds a five percent stake.