Italian major Eni is mulling plans to drill a frontier wildcat next year off KwaZulu-Natal province in South Africa.

Two exploration sources said the deep-water probe could spud in 2021 in Exploration Right 236, although both cautioned that discretionary spending constraints could yet see drilling postponed.

“I understand that Eni is potentially looking at a 2021 well,” said one source.

Another source confirmed that a probe is being considered, but given its virgin location and the current cost environment, a decision to drill has yet to be rubber-stamped.

Frontier position

“You would wonder what sort of enthusiasm there would be for something that is essentially frontier (drilling),” remarked one well watcher.

In August 2019, Eni received authorisation to drill after its environmental impact assessment (EIA) report was approved by the South African government.

At that time, the Italian player had outlined plans to drill in early 2020.

However, some stakeholders — including WildOceans — appealed the decision to approve the EIA, claiming, among other things, that the oil spill modelling aspect of the report was “fatally flawed".

The outcome of this appeal is unclear, although one well watcher believed “Eni has apparently overcome a lot of the environmental issues that have held up drilling".

South Africa’s Sasol Petroleum, Eni’s sole partner in the tract, is understood to be looking to reduce its 60% non-operating stake due to financial constraints.

“Sasol is seeking a farm-out to dilute ahead of that well,” said a knowledgeable explorer.

Semisub in view

There is a possibility, suggested one source, that Eni could use the semi-submersible Deepsea Stavanger to drill its probe, once the rig has finished an exploration campaign for Total near its ground-breaking Brulpadda condensate, gas and oil discovery to the west.

ER 236 is currently in its second exploration period, which is due to expire on 2 September 2021 and does not include the obligation to drill a well.

The EIA filed by Eni and its partner, covered the drilling of up to six wells in two prospective areas of the acreage, one off Durban and the other to the north off Richards Bay.

This report indicated up to four wells could be drilled in the northern area and two in the southerly play.

Drilling of the first exploration well would use a rig based out of Durban or Richards Bay.

The debut probe was originally due to be drilled between November 2019 and March 2020 and was expected to take about 71 days.

Any northern area well is expected to be drilled in water depths of 1500 to 2100 metres while a southern area probe would lie in depths of 2600 to 3000 metres.

The results of future drilling will depend on the result of this initial well.

A maximum of two exploration and two appraisal wells are expected to be drilled in the north, with one exploration well and one appraisal well proposed for the south.

Exploration sources said it is unclear what geological targets Eni has identified, but pointed out that the presence of volcanics have been an issue in some parts of KwaZulu-Natal’s waters.

However, in terms of metocean conditions and unlike Total’s Brulpadda play to the west, Eni’s acreage is said to be not as badly affected by the fast-flowing Agulhas current.

Exploration

Eni sets sights on deep-water South Africa frontier exploration well