NNPC, First E&P, Schlumberger seal $700m deal on development of OMLs 83, 85
More investments are underway in the nation’s upstream oil and gas sector following the recent agreement signed by the Nigerian National Petroleum Corporation (NNPC), FIRST Exploration & Production (First E&P), and Schlumberger for the development of the Anyala and Madu fields under oil mining leases OMLs 83 and 85, offshore Bayelsa State.
A statement issued by Schlumberger revealed that the deal is based on a guaranteed project return and includes a payment assurance bank facility. The investment in the project, phased over several years, is estimated at $700 million.
Additional details show that under the agreement, Schlumberger will contribute the required services in kind and capital for the project development until first oil. The joint project team will leverage the technical expertise of Schlumberger and the extensive local knowledge of the partners.
Besides, the project Final Investment Decision (FID), is expected to be made in December 2017, with first oil production in 2019.OML 83 and OML 85 are in shallow waters 40 km offshore in the Niger Delta.
The Anyala and Madu fields are discoveries with combined stock tank original oil-in-place (STOIIP), which refers to the oil in place before the commencement of production of more than 450 million barrels (bbl) and Gas Initially In Place (GIIP) of more than 800 Bscf.
Schlumberger added that the project will be developed with an existing Floating Production Storage and Offloading vessel (FPSO), and is designed to add 50,000 bbls of oil daily and 120 millions of standard cubic feet (MMscf) of gas per day.
First E&P holds a 40 per cent working interest in the licences, which it acquired from Chevron Nigeria Limited in February 2015 for $69 million; while NNPC holds the remaining 60 per cent.
Assets operator, First E&P said on its website: “Anyala field is located at a water depth of 55m, about 45 km off the coast of Bayelsa State and 23 km from Madu field. Full 3D seismic data have been acquired over both OML 83 and OML 85 acreages. Although both Anyala and Madu fields have been extensively appraised, production is yet to commence from the fields.”
The statement noted further that “an integrated oil and gas development plan will be carried out for the Anyala and Madu fields, with an estimated potential recoverable hydrocarbons volume of 340 million barrels of oil equivalent on a 100 per cent interest basis.”
