Afren, Excel to develop field off Nigeria
Afren PLC, London, has entered an agreement with Excel Exploration & Production Co. Ltd. of Nigeria to develop Eremor oil field in the Niger Delta.
LONDON, July 27 -- Afren PLC, London, has entered an agreement with Excel Exploration & Production Co. Ltd. of Nigeria to develop Eremor oil field in the Niger Delta.
Afren will complete the vertical Eremor-1 well, which produced 2,000 b/d of 22° gravity crude from an interval in 2005. Afren said the GOR was low but did not give details. The partners also will build a 7 km oil pipeline to a flow station near existing infrastructure and within 12 km of Royal Dutch Shell's producing fields.
Excel, operator, received a 100% interest in the marginal field from the Nigerian government. It has collected 3D seismic data over Eremor.
The field is in 3 m of water on OML 46 and contains as much as 30 million bbl of oil in place in one reservoir. Recoverable reserves in the same reservoir are estimated at up to 10 million bbl. Afren noted potential in a shallower reservoir.
Shell discovered Eremor in 1978 and hit five hydrocarbon bearing zones. Three appraisal wells were drilled during 1984-90.
This is the fourth partnership Afren has formed with Nigerian companies.
Afren will initially recover its investment from 90% of Eremor's net revenues. Following cost recovery, Afren and Excel will equally share production revenue and costs.
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