Nigeria

Afren PLC formed a joint venture with two other companies to become technical adviser and explore, appraise, and develop OML 115 off southeast Nigeria.

By OGJ editors
HOUSTON, Jan. 28
– Afren PLC formed a joint venture with two other companies to become technical adviser and explore, appraise, and develop OML 115 off southeast Nigeria.

OML 115, northeast of giant Zafiro oil field off Equatorial Guinea, adjoins undeveloped Ebok and Okwok oil fields. Ebok’s wellhead support structure is to be installed in early 2010, and Okwok is to be appraised later in 2010.

Afren’s joint venture is with Oriental Energy Resources Ltd., private Abuja firm, and Energy Equity Resources Ltd. Afren’s interest will be 32.5%. Afren said it has identified exploration potential at the deeper Qua Iboe level, which produces at Zafiro.

Afren will pay $6 million up front including signature bonus and license extension fees and drill one exploration well at a cost estimated at $30 million in the second half of 2010.

OML 115 is in the translational structural setting of the eastern Niger Delta and surrounds the Afren-Oriental-operated Ebok and Okwok development area. The southern part of the Okwok structure extends into OML 115. A production hub is possible in the area.

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