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On Tour

The US sales team celebrates the Broncos' Super Bowl victory. Not pictured: Peyton Manning.

Clients and prospective clients in Oklahoma and Colorado got a chance to meet our new business team this past month, with Project Manager Meagan Wall and Business Development Manager David Mungo traveling to Tulsa, Oklahoma City, and ultimately Denver, where they met with Marketing Manager Hunter Eden and a number of our Denver-based customers.

(They also got a chance to see the Broncos' victory parade, which some Denverites--inexplicably--found more exciting than the prospect of cutting-edge, rapid geochemistry. We didn't understand either, but we did enjoy the party.)

If you and your team were able to meet with us during this trip, we very much enjoyed it and look forward to a year of fruitful discussion and collaboration.  If circumstances didn't allow a meeting, we do hope we'll get to see you next time we're in the Rockies and Mid-Continent, or wherever you and the team work.  Keep your eyes on our newsletter for new opportunities to discuss possibilities with the StratoChem team.  We would love to help you maximize understanding of your play for minimal cost!

Your Friends at StratoChem Services

Despite Oil Slump, BP Stays Positive About Gas 
January 20th, 2016
    Egypt Flag Flat  
Britain's BP seeks to double natural gas production in Egypt in the next four years even as crude oil prices hit a 12-year low.

According to a report by Reuters, the factors for this include Egypt's current high in the oil and gas production industry. While firms worldwide scale back on projects involving fuel trades, Egypt has been aggressively signing exploration contracts, renegotiating the production prices and lobbying companies to speed up projects.

BP is currently the producer of 10 per cent of Egypt's oil production and 30 per cent of its gas.

In an interview with Reuters, BP North Africa regional president Hesham Mekawi said, "BP's plan is to double our gas production in Egypt, before the end of this decade."

There is speculation that BP's efforts could help close Egypt's energy gap as consumption has ballooned and production declined.
U.S. Crude, Gasoline Inventories Extend Build to Record Highs--EIA
January 12th, 2016
( www.reuters.com)

U.S. crude oil and gasoline inventories rose last week to new record highs as imports of crude grew and refineries increased output, data from the Energy Information Administration showed on Thursday.
Crude oil inventories rose 2.1 million barrels in the week to Feb. 12, lower than analysts' expectations for a 3.9 million-barrel build, to a peak of 504.1 million barrels in the third week of hitting record highs in the past month.

U.S. crude imports rose last week by 795,000 barrels per day.

Crude stocks at the Cushing, Oklahoma, delivery hub rose 36,000 barrels, EIA said, setting a new record high of 64.7 million barrels, for the third straight week.

U.S. crude futures pared gains after the data, which was in stark contrast for more bullish numbers from industry group the American Petroleum Institute on Wednesday that reported a 3.3 million-barrel drop in crude inventories. [API/S]

"The negative aspect is overall crude builds, which counter industry figures from yesterday that showed a drop, in the midst of refinery utilization rising," said Tony Headrick, Energy market analyst at CHS Hedging LLC.

U.S. prices were up 1.1 percent at $30.99 per barrel at 12:33 a.m. EDT (1733 GMT), off an earlier intraday high of $31.98 ahead of the data.

Refinery crude runs rose 338,000 bpd, EIA data showed as refinery utilization rates rose by 2.2 percentage points to 88.3 percent of capacity.

Gasoline stocks rose 3 million barrels, far more than forecasts for a 500,000-barrel gain, to a record high of 258.7 million barrels.

Distillate stockpiles, which include diesel and heating oil, rose 1.4 million barrels, versus expectations for a 1.5 million-barrel drop, the EIA data showed. On the Gulf Coast, stockpiles were at their highest seasonal levels since 2011.

(Reporting By Josephine Mason; additional reporting by Devika Krishna Kumar and Barani Krishnan; Editing by Marguerita Choy)

Looking Good for the Long Term
January 12th, 2016
( www.oilreviewafrica.com)

Success spread through the Rovuma basin to waters in neighboring Tanzania and within a relatively short time more than 100 tcf of recoverable gas reserves were proven up and LNG export projects launched. Despite the oil price downturn since mid-2014, work is ongoing in Rovuma waters, although there are signs of slippages.

A floating liquefaction plant (FLNG) is still on schedule to come onstream at Eni's Coral project in 2019, while Anadarko's hopes for an FLNG installation to be completed the same year at the Golfinho discovery might by now have been pushed into 2020. An FID was targeted for completion this year, but might be signed in the earlier parts of 2016. Targets for an Anadarko-led large 12 mmtpa onshore-located LNG plant have been set to 2022, but here signs of slippage are really starting to abound, not least because long-term LNG offtake commitments are proving hard to secure.
BGP Nets Red Sea Transition Zone Survey
February 2nd, 2016
( www.offshore-mag.com)

Saudi Arabian Flag
Saudi Aramco has contracted BGP to perform the operator's first 3D seismic survey in the Red Sea.
The transition-zone S78 project will last for nine months. According to BGP geological and surface conditions are complex due to the combination of deepwater, shallow water, islands and coral reefs, necessitating strict environmental procedures.

In Australasia, BGP Marine has won a contract to perform a 2,780-sq km (1,073-sq mi) 3D survey offshore Timor-Leste from TIMOR GAP (Timor-Leste National Oil Co.), using the BGP Prospector vessel.
Anadarko Details Offshore Cote d'Ivoire Drilling Schedule
February 2nd, 2016
( www.offshore-mag.com)

Anadarko Petroleum Corp. says a rig is on location at block CI-103 offshore Côte d'Ivoire to prepare for a drilling and interference testing program.

This is part of the ongoing appraisal of the Paon discovery: the program will include additional appraisal drilling.

Results should provide insight on reservoir connectivity, deliverability, fluid properties and reservoir size, possibly advancing the discovery toward commerciality.

Offshore Colombia, Anadarko's Calasu-1 exploration well, designed to test a large four-way structure 100 mi (161 km) north of the company's deepwater Kronos gas discovery, encountered non-commercial quantities of pay.

Late last year Phase I of the Esmeralda 3D survey was completed over a 16,300-sq km (6,293-sq mi) area across Colombian offshore blocks COL 1, 2, 6 and 7. Work on the 13,000-sq km (5,019-sq mi) Phase II is expected to start during the current quarter.

Cairn Energy Flows Oil from SNE-2 Well Offshore Senegal
January 4th, 2016
( www.rigzone.com)

Cairn Energy plc announced Monday that it has flowed oil from the SNE-2 appraisal well offshore Senegal.

Drill stem testing over a 39 foot interval of "high quality" pay flowed at a maximum stabilized, but constrained, rate of around 8,000 barrels of oil per day, which confirmed the "high deliverability of the principal reservoir unit in the SNE-2 well", according to a Cairn Energy statement. Oil flowed at another interval, described as relatively low quality, at a maximum rate of 1,000 bopd.

The SNE-2 well is located in 3,937 foot water depth and is approximately 62 miles offshore in the Sangomar Offshore block. The well, which reached a planned total depth of 9,186 feet below sea level, is appraising the 2014 discovery of high quality oil in the SNE-1 well. Initial indications have confirmed the same 32 degree API oil quality as seen in SNE-1, at the SNE-2 well. Resource estimates for the SNE field will be fully revised and announced after the results of further appraisal activity and the evaluation of the extensive dataset collected is continuing.

With drilling, coring, logging and drill-stem testing at SNE-2 safely and successfully completed, the well will now be plugged and abandoned.

Cairn Energy Chief Executive Simon Thomson commented in a company statement:

"We are delighted with the results of the SNE-2 well and in particular the well tests, which are significant in demonstrating the ability of the reservoirs to flow at commercially viable rates. The results help to confirm the overall scale and extent of the resource base in Senegal and further appraisal activity is expected to lead to future revision of the estimates. We now eagerly look forward to the results of the SNE-3 well."

Cairn announced Aug. 18, 2015 that it had reached an agreement with the government of Senegal over an extensive evaluation plan for the SNE-1 discovery, which commenced in September last year with a new 3D seismic survey over the Sangomar Deep, Sangomar Offshore and Rufisque Offshore permits. The survey, which covers 1,005 square miles, will assist with the delineation of the SNE discovery, with final processed products expected to be available by mid-2016.

BP Egypt to Acquire Additional Interest in the West Nile Delta Project
December 10th, 2015
( www.bp.com)

Egypt Flag Flat
BP Egypt has announced today the completion of its acquisition of 22.75% in the North Alexandria Concession and 2.75 per cent in the West Mediterranean Deep Water Concession from Hamburg-based DEA Deutsche Erdoel AG.
The acquisition will bring BP's working interest in both concessions of the West Nile Delta project to 82.75 per cent.

The West Nile Delta project agreement, concluded in March 2015, involves the development of 5 trillion cubic feet of gas resources and 55 million barrels of condensates. Production from WND is expected to be around 1.2 billion cubic feet a day (bcf/d), equivalent to about 25% of Egypt's current gas production. All the produced gas will be fed into the country's national gas grid. Production is expected to start in 2017.

Commenting on the deal, Hesham Mekawi, BP North Africa Regional President, said: "BP is proud of the successful partnership it has had with Egypt for more than 50 years, and its role in the development of Egypt's energy sector. We are pleased to be increasing our interest in the WND project, which is a strategic project for BP and will play a key role in helping to secure Egypt's energy supply for many years to come. This deal is another example of our commitment to help unlock Egypt's oil and gas potential through continued investments."

  • BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP's business is primarily in oil and gas exploration and production. BP is working to meet Egypt's domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries.
  • To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP's joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt's entire oil production, and currently produces almost 10% of Egypt's annual oil and condensate.
  • In addition, through joint ventures with EGPC/EGAS and IEOC (ENI) the Pharaonic Petroleum Company (PhPC) and Petrobel BP currently produces close to 30% of Egypt's total gas.
  • The West Nile Delta (WND) Project is a strategic project for BP. BP is the operator of the project.
  • BP has made a series of discoveries in Egypt in recent years including Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus, Salamat and Atoll.
  • BP is a 33 per cent shareholder of a natural gas liquids (NGL) plant extracting LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).
  • BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40 per cent) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.
In This Issue
Upcoming Events

3/9 - DUG Rockies: Denver, Colorado, USA

Sherine Helal: An Artist in Our Midst

Sherine Helal has been with StratoChem for about a year after graduating from the American University in Cairo with a major in marketing and minor in art--though as far back as high school, her teachers told her parents that she should study art full-time. She has participated in several exhibitions with the University and maintains a Facebook group to showcase her paintings. "I used to paint on my house balcony," she says. "But then a lot of people seemed interested in my paintings and wanted to buy them. It suddenly turned into a business. I opened my own gallery." While she works full-time at StratoChem now, our General Manager, Mohamed Said, offered Sherine a room inside the office building to paint in. "It was such a generous suggestion. I actually have a painting room now at Stratochem!" Sherine explains.

This month, we'll be showcasing some of what's come out of that room. We hope you enjoy it!

Have a suggestion for something you want to see from StratoChem? Contact us at < hunter.eden@stratochemlabs.com> and let us know! 
Dancing Queen
Oh Blesser
Evil Eye
Dancing Stars
Oh Africa
Music with the Cello
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