Camac Energy begins drilling at Nigerian oil well

offshore1 edibobb wikimediaThe oil from Oyo well is expected to boost Nigeria's oil output. (Image source: Edibobb/WikimediaCommons)Oil explorer Camac Energy has started drilling at the Oyo-8 development well, located offshore Nigeria

The US-based oil exploration firm holds a 100 per cent working interest in the well too. This development well is one of Nigeria’s first deep-water oil discoveries, and is located about 75km offshore Nigeria, stated reports. Oyo-8 will be drilled by The Northern Offshore Energy Searcher drillship to a depth of about 1,800 meters, said authorities at Camac Energy. The well is likely to start production in the last three months of 2014.

Camac Energy added that the Oyo-7 well will also be completed, following the Oyo-8 well. The two wells are likely to boost production from the Oyo Field substantially and support Nigeria's oil output. The nation's oil output is dwindling due to oil theft, vandalism of oil facilities, and bunkering. Crude production reportedly shrunk in 2013, with recent figures placed at 2.5mn barrels daily. Nigeria is believed to have lost more than US$2.5bn in potential oil revenue, owing largely to the drop in production.

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