Specifically, the Yinka Folawiyo-led joint venture has completed development-planning studies of the Aje oil field and planned to proceed with field start-up arrangements immediately.
The partners said the Final Investment Decision (FID) are expected in the near future with first production expected at the end of 2015.
The Field Development Plan (FDP), which was approved by the Nigerian Department of Petroleum Resources (DPR) early this year, is primarily focused on the Cenomanian oil development.
The Aje Cenomanian crude is light, sweet under-saturated oil of approximately 39.4 API gravity with a gas oil ratio of 375-480 standard cubic feet per barrel (scf/bbl).
The joint venture participants have undertaken detailed development planning studies of the Aje field, which have now been completed and they are currently considering the proposal to proceed with the Phase 1 Cenomanian oil development.
Yinka Folawiyo Petroleum is operating the field with partners like Jacka Resources, New AGE, First Hydrocarbons Nigeria, Energy Equity Resources and Panoro Energy.
Chairman Jacka Reources, Max Cozijn, in a statement Tuesday said: “Jacka is pleased to achieve this milestone in the development of the Aje Field and of the company.
“Following the final investment decision by the joint venture the first significant activity in the field will be the drilling of Aje-5 and the completion of this well and the existing Aje-4 well, in first quarter 2015. Installation of the production facilities, including tying the wells to the FPSO, will occur later in 2015. Jacka looks forward to achieving first commercial production at the end of 2015,”
According to him, an independent report on the Aje field recently completed by AGR TRACS International on behalf of the joint-venture partners has indicated that the gross 2P oil reserves for the Phase 1 Cenomanian oil development are 23.4 million barrels.
The gross 2C contingent resources total an additional 179 million barrels of oil equivalent, of which 15.7 million barrels of oil is attributable to the Phase II Cenomanian oil development and the remainder to the later Turonian gas/condensate development.
The Aje Field is located in OML113, approximately 24 kilometres offshore Lagos, Nigeria.
OML113 covers an area of 835 square kilometres and water depths range from less than 100 metres to approximately 1,500 metres. The field, which is defined by 3D seismic, can be developed with wells drilled in conventional water depths of approximately 100-400 metres.
The company said, a new 3D seismic survey, covering the whole of OML113, was acquired earlier in 2014 and will be used for locating subsequent development wells as well as pursuing exploration and appraisal targets, including the possible extension of the Ogo discovery from the adjacent OPL310 exploration area.
The initial field discovery well, Aje-1 was drilled in 1996. A total of four wells have now been drilled on the Aje Field and hydrocarbon resources proven at three reservoir levels (Turonian, Cenomanian and Albian).
“An initial field production rate of approximately 10,000 barrels of oil per day is anticipated. Solution gas will be used as fuel. Drilling and completion operations are expected to commence in Q1 2015, with FPSO installation in mid-2015.
“All major contractors have been identified (FPSO, installation, flowlines, drilling among others) and contracting discussions are advanced, in most cases to draft contracts; which provides assurance on cost and availability of services.” it stated.
“No crude sales agreements have yet been entered into for the project but as the Cenomanian oil is a light crude and the project is located on major shipping routes to and from Nigeria’s main oil producing areas, sales and access to transport is not expected to be a problem.
“Following the approval of the FDP by the Nigerian authorities in Q1 of this year, there are no major environmental or regulatory approvals outstanding,” it stated.
– The Guradian