Since the Spanish government has a go-ahead on the drilling activities offshore of Canary Islands, Spain’s Repsol could start its drilling this year.
Bloomberg reported that the Spanish government’s Industry Ministry has approved of the drilling plans proposed by Repsol in the Official Bulletin, dated 11 August and published 13 August. This drilling move is in the quest of environmental permits that took place earlier this year.
Repsol is in charge of Blocks 1-9 offshore the Canary Islands. It also partners with RWE- Australia’s Woodside Energy and German Power Company who contributed into the blocks in 2002. However, after certain government delays and environmental challenges, the blocks were suspended in 2004 and reactivated once again in 2012.
The Blocks ranging from 1-9 have considerable resource base in Tertiary and Cretaceous targets, according to RWE. These blocks fall in the east of Lanzarote and Fuerteventura, in the Aaiun-Tarfaya sedimentary basin. RWE reports that the area has three Tertiary ready prospects situated on the salt structures, (oil resources of 482MMbbl). The company’s primary targets are focused on Miocene to Paleocene submarine channels and fans.
RWE informed that Repsol and its industry partner have committed to drill additional geological and geophysical studies, along with two wells, by Q1 2016. Nevertheless, in case of any failure at the time of drilling, Repsol is ready to spend Euro7.5 billion (US$10 billion) on the project. The drill will be at the site near the Canary Islands of Fuerteventura and Lanzarote in waters, added Bloomberg.
Repsol plans to begin its work before the year close. According to the estimations of geologists and professionals for the area between the Morocco and Canaries there could be adequate petroleum to serve around 10 percent as full-scale production.