The Nigerian National Petroleum Corporation, NNPC, alongside two other companies, FIRST Exploration & Production (First E&P), and Schlumberger have signed a $700 million tripartite agreement for the development of Anyalu and Madu oilfields in Bayelsa State.
The Anyala and Madu fields are discoveries with combined stock tank original oil-in-place (STOIIP).
According to a statement by Schlumberger, the deal is based on a guaranteed project return and includes a payment assurance bank facility.
First E&P holds a 40 per cent working interest in the licences, which it acquired from Chevron Nigeria Limited February 2015 for $69 million; while NNPC holds the remaining 60 per cent.
Under the agreement, Schlumberger will contribute the required agreed services. The joint project team will leverage the technical expertise of Schlumberger and also the extensive local knowledge of the partners.
The project Final Investment Decision (FID), is to be made in December 2017, with first oil production in 2019.OML 83 and OML 85 are in shallow waters 40 km offshore in the Niger Delta.
According to Assets operator, First E&P, “Anyala field is located at a water depth of 55m, about 45 km off the coast of Bayelsa State and 23 km from Madu field. Full 3D seismic data have been acquired over both OML 83 and OML 85 acreages. Although both Anyala and Madu fields have been extensively appraised, production is yet to commence from the fields.”
It added that “an integrated oil and gas development plan will be carried out for the Anyala and Madu fields, with an estimated potential recoverable hydrocarbons volume of 340 million barrels of oil equivalent on a 100 per cent interest basis.”
By Tobi Olaonipekun