US$700mn agreement for development of OMLs 83 and 85 in Nigeria

NNPCThe Nigerian National Petroleum Corporation (NNPC), FIRST Exploration and Production (First E&P) and Schlumberger signed a tripartite agreement for the development of the Anyala and Madu fields under OMLs 83 and 85, in Nigeria’s offshore Bayelsa state

In a statement Schlumberger explained that the project has been phased for several years, with an estimated investment of US$700mn.

As per the agreement, Schlumberger will provide its technical expertise for the development of the project until first oil and contribute the required services in kind and capital.

Schlumberger said that the agreement is based on a guaranteed project return and includes a payment assurance bank facility.

The project is planned to be developed with the existing floating production storage and offloading vessel (FPSO), and is expected to add a daily 50,000 bbls of oil and 120 mmscfd of gas per day.

Schlumberger said that the project’s final investment decision (FID) is expected to be made in December 2017, and the first oil production is scheduled in 2019.

OML 83 and OML 85 are in shallow waters 40km offshore in the Niger Delta. The Anyala and Madu fields are discoveries with combined stock tank original oil-in-place (STOIIP) of more than 450 mnbbl and gas initially in place (GIIP) of more than 800 bscf.

Schlumberger stated that First E&P holds a 40 per cent interest in the licenses and the NNPC holds the remaining 60 per cent.

Anyala field is located at a water depth of 55 metres, about 45km off the coast of Bayelsa State and 23km from Madu field.

Commenting on the deal, First E&P, Nigerian asset operator said that the agreement aims to carry out an integrated oil and gas development plan for the Anyala and Madu fields, focusing on an estimated potential recoverable hydrocarbons volume of 340 mmbbl of oil on a 100 per cent interest basis.

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