Perenco chases Hylia SW find with appraisal drilling

Perenco has begun drilling an appraisal well in Gabon, close to its shallow water Hylia South West discovery from December 2022. The original discovery, HYSM-1, found a 40-metre net oil-bearing column in the Ntchengue Ocean reservoir. It found another column in the Madiela carbonate reservoir. The appraisal well is targeting both of these reservoirs. Dixstone’s Banba jack-up rig is carrying out the work, which should take 30 days.

The HYSM-1 well is producing 6,000 barrels per day. Perenco began producing at the field in October 2023 at a rate of around 3,000 bpd. Perenco Oil and Gas Gabon general manager Adrien Broche said appraisal drilling would help determine “the full potential of this area after the recent exploration success at Hylia South West. It is designed to further inform our understanding of both the [Ntchengue Ocean] and Madiela reservoirs, and to narrow our estimate of oil resources in place, presently estimated at between 20 and 100+ million barrels.” Hylia South West is around 10 km from the Hylia field. A pipeline runs from the new field to the Hylia platform.

Expansion plans

Gabon is crucial to Perenco’s growth plans. While producing crude for export plays a part, the company is also showing interest in expanding its gas production.At the start of February, Perenco signed a memorandum of understanding with the Gabon government on a 20 MW gas-to-power project in Mayumba. Construction is due to start in the second quarter of this year and reach completion in 2025.

Perenco will invest $50 million in collecting gas from offshore fields and bringing it onshore to the power plant. It should double available power in the region, with electricity going to homes and industries in the area. Canadian-listed Millennial Potash said it might be one beneficiary of the power for its proposed Banio potash plant. Perenco also recently inaugurated the new mobile production Unit C living quarters platform at its Tchatamba hub, in Gabon.