FAR Limited (ASX:FAR) has begun front-end engineering design (FEED) activities for phase-one development of its SNE oil field offshore Senegal.
The FEED will aim to finalise budget, schedule and technical definition of the oil field’s development before a final investment decision is reached in 2019.
SNE is being developed through a joint venture agreement with FAR acting as operator and holding a 15% interest in the project.
FAR managing director Cath Norman said the start of FEED activities was a significant milestone for the joint venture’s development of the SNE field.
Norman said: “From discovery to entering FEED in a four-year period, especially given the general market conditions, is a substantial achievement for the joint venture.
“In addition to the commencement of FEED, the joint venture project financing has now commenced.
“It has been a successful 2018 for the SNE field development project and we look forward to working closely with the joint venture and Government of Senegal as we progress the final investment decision in 2019.”
The SNE field is being developed in phases, with the first targeting an estimated 230 million barrels of oil resources from 11 producing wells, 10 water injectors and two gas injectors.
This phase will primarily target the lower, less complex reservoirs.
FAR expects its floating production storage and offloading (FPSO) vessel to have a capacity of around 90,000 barrels of oil per day in the first phase, with first oil targeted for 2022.
FAR recently completed drilling the Samo-1 well offshore from The Gambia, encountering oil shows at several levels which indicate the area has access to an active hydrocarbon charge system.
As the first offshore well in 40 years and the first modern well, the data from Samo-1 and the ongoing interpretation will be critical to unlocking the area’s hydrocarbon potential.
Although the well will be abandoned due to wireline logs indicating the main target horizons are water-bearing, the drilling has provided new subsurface information that will help the company understand the geological play along the shelf edge.
The Gambia’s government has confirmed a six-month extension to the current licence to allow for evaluation of the Samo-1 well results.