Nigerian independents push E&P projects

Oct. 11, 1999
Six of Nigeria's indigenous oil companies plan to begin exploration and production operations by yearend in projects assisted by foreign partners.

Six of Nigeria's indigenous oil companies plan to begin exploration and production operations by yearend in projects assisted by foreign partners.

Four operators plan to drill new-pool wildcats and two plan to begin oil production on their blocks, which were awarded by the previous regime in Lagos as part of a parcel of 48 E&P licenses granted to indigenous companies during 1991-94.

The companies that have slated exploration wells are: Alfred James Petroleum, operator of Oil Prospecting Lease 307; Noreast Petroleum on OPL 215; Peak Petroleum on OPL 460; and South Atlantic Petroleum on OPL 246.

Industry sources said Alfred James, along with partner Abacan Resource Corp., Calgary, chartered a drilling rig that was to begin drilling soon on OPL 307. However, the company later discovered that the rig was being held by another operator and would not be available until December.

Noreast, in partnership with Mobil Corp. and Chevron Corp., reportedly has identified several prospects on OPL 215 after interpretation of 3D seismic survey data acquired during 1997-98. Noreast is thought to be considering drilling one of three prospects on the block in the fourth quarter.

Peak Petroleum acquired 3D seismic data on OPL 460 in 1997 and is also preparing to spud its first well there before yearend.

Meanwhile, South Atlantic Petroleum is reportedly interpreting 3D seismic survey data acquired on OPL 246 and is slated to spud wildcat Akpe-1 in November.

Sources said that the wells to be drilled by Peak Petroleum and Alfred James were expected to cost about $10 million each, while the Noreast and South Atlantic wells would cost up to $35 million each, because their planned well locations are in Nigeria's deep offshore area, where water depths are 200-2,000 m.

Also in the fourth quarter, Yinka Folawiyo Petroleum, operator of OPL 309, and Cavendish Petroleum, operator of Oil Mining Lease 110, are expected to commence development of oil discoveries. Both companies have begun the search for funding.

Indigenous operators that have brought discoveries into production are: Consolidated Oil, now producing 10,000 b/d of oil; Express Oil & Gas, 18,000 b/d; Monipulo Nigeria Ltd., 16,000 b/d; Amni International Petroleum, 15,000 b/d; Continental Oil & Gas, 18,000 b/d; and Atlas Petroleum, 8,000 b/d.