The multinational Repsol-Partex oil and gas
consortium says it will commence “clean and safe” exploratory drilling off the
south coast of Portugal
late this year or early next, but it may be another four or five years before
it can accurately gauge if hydrocarbon deposits are sufficient to make it
worthwhile to proceed to commercial extraction.
The consortium
has already carried out seismic surveys and other preparatory studies since
acquiring the offshore concession for blocks 13 and 14 in Algarve waters in
October 2011. As the exploration is still in the preliminary stages, no firm date
can yet be set for the start of drilling.
Repsol, with its
headquarters in Madrid and 90% of the shares
in the partnership with Lisbon-based Partex, is the main operator in the Algarve
project.
In September
2012, Repsol in partnership with Petrobras, Galp and Partex acquired the rights
to prospect in Peniche Bay north of Lisbon .
The Brazilian corporation Petrobras withdrew from the consortium last May
leaving Repsol as the project operator with 65% of the shares. Galp has 30%
participation and Partex the remaining 5%. Drilling off Peniche is not expected
to start until at least 2016.
While much more
sophisticated exploratory techniques exist these days, onshore and offshore
searches have been carried out in Portuguese waters for many decades. Several
major companies, including Shell, Chevron and Esso, have drilled scores of
wells in various demarcated blocks, especially since the 1970s. No commercial
production has ever been achieved.
The Poseidon gas
fields in the Cadiz basin suggest that deposits
in the neighbouring Algarve
basin are more likely to contain commercial quantities of natural gas rather
than oil.
A Repsol spokesman told Portugal Newswatch this week that environmental and safety studies are being carried out
before any drilling takes place. This comes amid public concerns about the
possible impact of drilling on regional tourism and the economy, as well as the
fishing industry, marine ecosystems and coastal landscapes.
“Environmental
and safety studies are being conducted to guarantee a clean and safe drilling
operation,” the spokesman said. “Repsol does environmental and safety studies
prior to any operation, taking into account the social, economic and
environmental issues and following legislation and the highest international
standards in the industry. The company takes into consideration such studies in
the planning of the operations and works closely with national and local authorities.”
On the subject of
pollution, the spokesman added: “One basic difference between gas and oil is
that gas evaporates and oil needs containment on water surfaces. In the event
of a well failure, gas spills are easier to control than oil spills, as the gas
is not retained in the seawater. No water pollution is generated and the
hydrocarbon bubbles into the atmosphere until well control is achieved. In the Algarve , as no
hazardous gas is expected, a gas pollution case is an extremely improbable
situation.”
It is still too
early in the exploration process to know exactly where the Algarve or Peniche
drilling rigs will be located, “but they will always be some tens of kilometres
off the coast and will not be visible from the shore,” said the spokesman.
* Photo of oil and gas operation in the Gulf of Mexico