Elf plans offshore Nigeria development

A TotalFinaElf SA subsidiary will soon begin development of a field discovered 10 years ago, the French oil major said. A joint venture of Elf Petroleum Nigeria Ltd. and Nigerian National Petroleum Corp. discovered the Amenam-Kpono field off Nigeria in 1990. TotalFinaElf estimates development of the 500 million bbl oil field could cost $1 billion. Production via a floating storage and offloading vessel is expected by 2003.

Jun 14th, 2000


PARIS´┐ŻA TotalFinaElf SA subsidiary will soon begin development of a field discovered 10 years ago, the French oil major said. A joint venture of Elf Petroleum Nigeria Ltd. (EPNL) and Nigerian National Petroleum Corp. (NNPC) discovered the Amenam-Kpono field off Nigeria in 1990. TotalFinaElf estimates development of the 500 million bbl oilfield could cost $1 billion. Production via a floating storage and offloading vessel (FSO) is expected by 2003.

Amenam-Kpono straddles Blocks OML 99, operated by a joint venture of EPNL and NNPC, and OML 70, operated by a joint venture of NNPC and Mobil Producing Nigeria Unlimited. The discovery well, AMN-1, was drilled by the NNPC-EPNL venture on OML 99 in 1990. The venture confirmed the extension of the field into OML 70 with the drilling of another well, KPN-1, in 1995. The reservoirs are at depths exceeding 3,500 m below sea level.

Production from the field will be lifted through a 30-km pipeline linking the production platform to the FSO at EPNL's Odudu field on Block OML 100. Production start-up is planned for mid-2003. Output is expected to peak at 125,000 b/d of oil.

In line with Nigeria's zero gas-flaring policy, the associated gas will either be reinjected or sold through the nearby LNG plant at Bonny. Production life of the field is expected to be more than 25 years.

Amenam-Kpono is one of the Nigerian joint-venture fields for which alternative funding structures were discussed with NNPC. As a result of NNPC's persistent capital shortage, its potential partners have sought deals under which they would provide funding and, in return, NNPC would receive a reduced share of the production profits. Under terms of an agreement signed June 7, EPNL will finance NNPC's share of Amenam-Kpono development expenditures.

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