What about the mature or ageing wells?
…IOCs faced with the task of selling ageing wells to independent and marginal oil companies
Some wells drilled many years back are ageing as well transformation in business models of some IOCs which are leading to divestment. As these wells are maturing or ageing and producing below the commercial ranking of mega oil companies as economic viable, those wells which are tagged marginal are below financial edge of the companies are tremendously been sold to independents and local companies.
Many of such wells are expected to spring up this year in Gabon, Nigeria, Angola and Equatorial Guinea. Therefore, from this year to 2018 more local upstream investments and sales of such well will be done by Shell, Total, Eni and Chevron .
Recently, Total reached an agreement to sell stakes and transfer operatorship in several of mature oil fields offshore Gabon to Perenco, a French independent. The total value of all transactions between total and Perenco are about US$350 million. The total production divested by the French multinational company, Total is about 13,000 barrels per day which holds Total’s interest in 10 fields.
Buying of matured fields helps marginal and independents to bypass the exploration , saving cost and go on straight to well stimulation and early production.