Nigeria’s City of excellence, Lagos is adding one more virtue to its many assets, by December 2015 the city would be an oil producing state. Aje, an offshore field located in the western part of Nigeria in the Dahomey Basin at the border with Benin, would be explored for oil and its first oil is targeted for December 2015 as the process takes 90 days to complete.
The field is situated in water depths ranging from 100 to 1,000 metres about 24 kilometres from the coast. The field is said to contain hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.
Yinka Folawiyo Petroleum Company is the operator, with 25 per cent interest in the field. Other partners are Vitol, First Hydrocarbons Nigeria Limited, Energy Equity Resources Limited, Panoro Energy ASA and Jacka Resources Limited.
The Chief Executive Officer, Panoro Energy, Mr. John Hamilton, has been quoted in an official statement saying, “Panoro is very pleased to be entering into the rig contract for the drilling and completion of the Aje development wells. We have been able to achieve a lower rig rate than was expected when the Final Investment Decision was made in October 2014.
“With well operations expected to commence in the next few weeks, we will continue moving towards our incremental growth strategy of converting Panoro’s discovered resource base into commercial production and generating positive cash flow in 2016.”
The statement however also stated that well operations are expected to commence in early third quarter of 2015 (October) and are likely to take approximately 90 days to complete. Once well operations have been completed, subsea equipment will be installed and the wells will be tied back to the Front Puffin FPSO, currently undergoing refurbishment in Singapore.