Joint Niger Delta gas development proceeds

Feb. 14, 2019
A joint venture led by Shell Petroleum Development Co. has made its final investment decision for the Assa North/Ohaji South natural gas project in Nigeria’s northeastern Niger Delta. Nigerian National Petroleum Corp. expects the fields to produce 600 MMscfd of gas and says a doubling of output is possible. It estimates the resource at 4.3 tcf of gas and 215 million bbl of condensate.

A joint venture led by Shell Petroleum Development Co. has made its final investment decision for the Assa North/Ohaji South natural gas project in Nigeria’s northeastern Niger Delta (OGJ Online, Aug. 15, 2018).

Nigerian National Petroleum Corp. expects the fields to produce 600 MMscfd of gas and says a doubling of output is possible. It estimates the resource at 4.3 tcf of gas and 215 million bbl of condensate.

Production is to start in the fourth quarter of 2019 or first quarter of 2020.

Assa North, on OML 21 operated by Shell, and Ohaji South, on OML 53 operated by Seplat Petroleum Development Co. of Lagos, are in communication with one another and will be developed under a 50-50 unitization agreement.

Seplat acquired its 40% interest in OML 53 in February 2015 from Chevron Corp. NNPC holds the remaining interest.

In OML 21, NNPC holds a 55% interest. Other partners besides Shell are Total Exploration & Production Nigeria and Nigeria Agip Oil Co.

In a 2015 environmental report, Shell said six exploration and appraisal wells had been drilled in the fields. It said initial development would include the drilling of six wells and construction of a gas processing plant.