CNPCIT spuds Niger well

A subsidiary of China National Petroleum Corp. (CNPC) has begun drilling the Facai-1 exploration well in Niger. The announcement came from Chinese National Petroleum Corporation International Tenere's (CNPCIT) partner, TVI Pacific.

The well is located in the Tenere block, which covers 71,155 square km in the northern part of the Termit Rift Basin.

TVI said CNPCIT had been active in the southern part of the basin, appraising oil discoveries and drilling new exploration wells "with the aim of reaching oil reserve volume threshold to justify an export pipeline."

The statement from TVI, on June 13, said the Facai well was around 110 km north of the West Fachi-1 exploration that was drilled by the two companies in 2007. The Facai well had been planned to be drilled in May 2008 but conflict between Nigerien government forces and Tuareg led to delays.

The companies had hoped to begin drilling Facai-1 in the first quarter of this year. TVI did not explain what had caused this further delay.

Facai-1 is to be drilled to an estimated depth of 3,700 metres and is intended to test Cretaceous sandstones in an anticlinal trap. The well will take around 60-90 days to reach total depth. TVI said seismic data indicated hydrocarbons were present in the targeted reservoir zone.

TVI holds its 20% stake in the Tenere block via TG World Energy, which it acquired via a share issue in mid-March. CNPCIT carries TVI for all of its share of drilling costs in the Facai-1 well.

CNPC also holds the Agadem block, which lies to the south of Tenere. The deal on Agadem was affirmed by the Nigerien junta, following a coup in August 2010. The Chinese company is reported to have made two discoveries in Agadem.

In tandem with its exploration, CNPC is also working on a refinery and pipeline plan for Niger, with the first phase due to be completed this year. Ground was broken for the Zinder refinery in October 2009. It is to have capacity of 20,000 barrels per day.