SDX Energy plc said that it has commenced drilling the Ksiri-21 (“KSR-21”) well in Sebou Central of the Gharb Basin, Morocco. The vertical development well will be drilled to a planned total depth of approximately 1,950 metres. Using existing 3D seismic, the well is targeting a well-defined prospect within the main Hoot formation, which is the main producing sand in the area. SDX has drilled over 20 production wells in the same basin. 

As such, this new well presents a low-risk step-out location. The well can be immediately brought into production, supplying gas to existing customers, under the improved gas price announced on 5 June 2023. The Company will make further announcements as appropriate.

“Commencement of drilling signifies an early milestone in SDX’s new roadmap in Morocco, which the Company will present imminently. As part of re-energising the Company’s upstream production, we will assess the feasibility of drilling additional wells, back to back. This type of programme would reduce capex per well, ensure operational efficiency, and prove sufficient reserves of ‘gas-behind-pipe’ to meet both existing and future demand,” Daniel Gould, Managing Director, commented.

bp  signs long-term liquefied natural gas offtake contract  in Canada

bp has entered its third long-term liquefied natural gas (LNG) offtake contract from the Woodfibre LNG facility based in British Columbia, Canada. With the additional contract to offtake 0.45 million tonnes of LNG per year (mtpa) for 15 years on a free on  board (FOB) basis, all of the LNG production from the Woodfibre LNG export facility is now committed for sale to bp, with firm offtake totalling 1.95 mtpa and the remainder on a flexible offtake basis.

bp continues to look for opportunities across the gas value chain, as it sees LNG as an essential part of the energy transition and its own pivot to becoming an integrated energy company. As bp works towards building an LNG portfolio of 30 million tonnes by 2030, the additional Canadian west coast supply source expands bp’s flexible, high-quality LNG portfolio and further enhances the company’s capability to meet the growing global natural gas demand.

“As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow and this additional Canadian supply source will further enhance bp’s supply positions in the Pacific region. We look forward to continuing our close collaboration with Woodfibre LNG.” Jonathan Shepard, VP global LNG trading and origination, bp

In addition to securing LNG offtake rights from the project, bp will provide safe and reliable transportation of gas to the Woodfibre LNG export facility during the 15-year contact term.

Jonathan Shepard, VP global LNG trading and origination at bp, said: “As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow and this additional Canadian supply source will further enhance bp’s supply positions in the Pacific region. We look forward to continuing our close collaboration with Woodfibre LNG.”