Afren and Lekoil sign farm-out deal on Nigeria’s OPL 310

offshore nigeria-leonardo barbosa sxc.huOPL 310 is located in the upper cretaceous fairway that runs along the West African Transform Margin and lies close to the Aje field, which has been declared commercial. (Image source: Leonardo Barbosa/sxc.hu)Afren has announced the completion of a farm-out agreement with Lekoil at 17.14 per cent on the oil prospecting licence (OPL) 310, located in Benin Basin offshore Nigeria

Under the terms of the agreement, Afren will receive a total carry of up to US$50mn with respect to an exploration well that is currently being drilled at the Ogo prospect. 

The well is being drilled at a depth of 1,066 metres and is a four-way dip-closed structure in the Turonian to Albian sandstone reservoirs, targeting 78mn barrels of oil equivalent (mmboe) of gross P50 prospective resources (50 per cent certainty of being produced).

Osman Shahenshah, chief executive of Afren, said, “We are delighted to have successfully concluded a farm-out on OPL 310 offshore Nigeria and welcome Lekoil as a partner in exploring the significant potential of this under-explored region of the West African Transform Margin.”

Nigerian energy company Optimum Petroleum Development Limited, block operator, will continue to hold a 60 per cent participating interest, with Afren providing technical assistance to Optimum under a technical assistance agreement. 

OPL 310 is located in the upper cretaceous fairway that runs along the West African Transform Margin and lies close to the Aje field, which has been declared commercial.

Extending from the shallow water continental shelf to deep water, the block represents an exploration opportunity in an under-explored basin with a proven working hydrocarbon system in close proximity to the Tano Basin.

Detailed evaluation of the block has identified several prospects lying in the same Turonian, Cenomanian and Albian sandstone intervals that have yielded significant oil discoveries in Ghana and Côte d’Ivoire.

The drilling programme is expected to last 90 days and will include a planned side-track, which will test a new play of stratigraphically trapped sediments that pinch-out onto the basement high targeting 124 mmboe of gross P50 prospective resources. 

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