Treasures in the Basement 1/28 Apr 2019 13:41
Treasures in the basement?
Untested geological formations known as ‘fractured basements’ could be hiding a vast store of hydrocarbons, but explorers need to overcome logistical challenges and industry scepticism
A West of Shetlands play being pursued by Hurricane Energy is entering a production phase that could prove crucial not just for the UK-based hydrocarbons firm, and the Scottish region, but also for industry perceptions of a reservoir type that was for decades derided as unfeasible.
First oil from the fractured basement in Hurricane's Lancaster field, located along the prominent Rona Ridge basement that is home to most of its portfolio, can now proceed this year after the Aoka Mizu floating, production, storage and offloading vessel successfully connected to the early production system on 19 March. If successful, output is expected to reach around 17,000bl/d once the initial start-up phase has been completed and the field is on continuous production.
If the basement reservoir potential is proven and this spurs deeper interest from majors-BP, ConocoPhillips, Shell are already operating there-then the West of Shetlands could become a much more significant strategic resource for the UK.
Published industry figures indicate that there are some 30bn barrels of oil in place in the basement of the Rona Ridge, of which Hurricane is estimated to have 2bn boe in prospective and contingent resources.
However, Hurricane CEO Robert Trice, who has championed the basement prospects of the region and of fractured basements for years, does not feel it is time to crack open the champagne just yet.
"There is too much left to do to start reflecting on this," he tells Petroleum Economist. Indeed, tethering Aoka Mizu to the buoy was a challenging episode, and investors' hearts likely fluttered as roping snags twice caused hook-up operations to be postponed before being it was securely moored. "But if the operation plays out as planned, then it will be a game changer for the UK," he adds.
Game changer
The operation also comes as the prospects of fractured basements-a geological structure that lies below the softer sedimentary sandstone from which most resources have been recovered-are riding a tailwind. Basement reservoirs have been recognised globally for decades as having potential, but were often disregarded-with wells barely penetrating them-as many oil companies stop drilling as soon as basement rocks are intersected.
Last month, Indonesia announced a fractured basement find that analysts expect will be its biggest gas discovery in almost two decades. The Kaliberau Dalam Well 2X in South Sumatra, found by Repsol and partners Petronas and Mitsui Oil Exploration, has at least 2tn cf of recoverable resources.
Southeast Asia has historically been a big part of the fractured basements story-most of Vietnam's oil production is from a fractured granite basement in the Cuu Long basin with six major oil fields producing primarily from basem
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