FAR: SNE minimum economic field size achieved, project at pre-FEED stage By Martin Kovacs, 1 Sep 2016

FAR Limited has advised that it has assessed that the minimum economic field size for a commercial development has been achieved at the SNE oil field, offshore Senegal.

FAR advised that the project is at the pre-FEED stage, with development planning underway.

“FAR has completed pre-engineering studies with engineering consultancy AMOG and has prepared an SNE field concept development plan based on its upgraded P50 (2C) contingent resource estimate of 641 MMbbl,” FAR stated.

“A standalone FPSO development is envisaged with topside expansion capability for later SNE field development phases and satellite tie-backs. FAR’s development concept represents a phased development approach with a plateau production rate of 140,000 bopd and first oil in 2022.”

FAR's cost estimates are for development expenditure of $13–15/bbl, and operating expenditure of $12–14/bbl (including FPSO lease costs), with a development cost split of drilling and completions 45%, subsea 46%, and project and other 9%.

“FAR’s recently released third upgrade to the SNE oil field contingent resources and preparation of a detailed concept development plan supports FAR’s view that SNE is a world-class oil field that can support a commercial development,” FAR Managing Director Cath Norman commented.

“FAR has assessed that the SNE field has surpassed the minimum economic field size and the project is at the pre-FEED stage with development planning underway. The focus is on optimising and scaling a first-phase development project.

“The project is well-positioned to benefit from cost deflation. Development and operating costs estimates for the concept development are relatively low, making the break-even oil price very competitive in the current oil price environment at less than US$40 per bbl.

“Further appraisal drilling expected to start in late-2016 will target understanding the connectivity of the upper reservoirs and help optimise and scale the development.”