Sopuruchi Onwuka

Partners in the offshore Aje field are working to deploy a bigger permanent production vessel to drive production enhancement in the oilfield after overcoming initial funding setbacks and production downturns.

Expectations for a new floating production vessel mean that the existing shallow water floater currently in deployment will have to be dismantled and relived of its lease contract.

The Oracle Today reports that the partnership in Aje field development has continued to see turnout of investors as the operator, Yinka Folawiyo Petroleum Company Limited, shops equity funding in driving full development programme for the field which lies close to Nigeria’s maritime boarder with Benin Republic.

Current partners include YFP with operating interest, New Age, EER, ADM Energy and Panoro Energy now linked with PetroNor. Panoro Energy secured approval to sell a 10% stake to PetroNor.

Completion of the transaction for entry of PetroNor is expected to accelerate the final investment decision (FID) on the long-term field development plan that involves drilling of three new wells to increase oil and gas production.

Dr. Babatunde Pearse, chief engineer for the Aje development, will lead the planning, development and also oversee FEED studies to support the FID.

The Aje Field Development Plan (“FDP”) which was approved in March 2014 reached Final Investment Decision (FID) October 2014 for a three phase development programme.

The plan approved by the government includes a first phase that would focus on the Aje Cenomanian oil reservoir with a tie-back of two existing subsea wells and a leased Floating Production Storage and Offloading vessel (“FPSO”). Phase 1 production commenced in May 2016 with the project promoters expecting to drive further development with expected cash revenue from exports.

The new partners, it was gathered are working to salvage production at the field by putting additional investments in further development, including subsea production facilities and a larger floating production vessel.

In the first full year statement on the field, one of the partners reported oil production of 407,705 bbls at 1,117 barrels of oil per day in 2021.

ADM Energy declared in statement that the planning for the second phase of Aje field development is now underway to deliver additional wells and increase total Cenomanian oil production.

The company added that the third phase of the development would target the Turonian gas condensate reservoir.

Consequently, the production growth plan would entail replacement of the main floating production facilities to position for greater production capacity for all the production fields in the oil block hosted in Oil Mining Lease (OML) 113 area offshore Lagos State.

Regulators, it was gathered, have been notified of long-term development plans for OML 113 which involves the ongoing development.

Production estimates for the full scope development is yet to be determined, but The Oracle Today reports that replacement of the floating production vessel signals that output would likely shoot beyond the original nameplate of 10,000 barrels per set for the existing FPSO.

The partners in the development programme, it was gathered, have declined contract extension for the Front Puffin floating production, storage and offloading unit working under a charter contract due to expire in July.

Without new contract in place, The Oracle Today reports, marine services provider, L&R Midland, and Braemar ACM Shipbroking have started marketing the vessel for sale.

The Front Puffin is now scheduled to stop production in preparation for demobilization and vacation of space for another FPSO that could allow for substantially increased production from the redevelopment of Aje.

OML 113 covers an area of 835 sq km offshore Nigeria close to the Benin border and holds the Aje Field, first discovered in 1997, as well as a number of exploration prospects.

The Aje Field is an oil producing asset which is rich in gas and condensate reserves in the Turonian, Cenomanian and Albian sandstones, similar to the producing Jubilee field offshore Ghana. To date five wells have been drilled: Aje-1 and Aje-2 both flow tested oil and gas condensate at high rates and it currently has two producing wells, Aje-4 in the Cenomanian and Aje-5 in the Turonian.

Our checks showed that the Aje-5 well could not turn in expected results, leading the operating company to seek further interpretation of seismic data to offer new direction in the field’s drilling programme.