According to the Upstream Newspapers, the notification showed that the operator will take hold of the rig, which will relocate to the Oyo field on July 31 for a total of 60 days.
“We are pleased to receive notification of the new proposed assignment date for the Sedneth 701 rig,” Upstream quoted Senior Vice President of Exploration and Production, Segun Omidele, to have said.
He added: “Due to our extensive work to date, we are prepared to begin drilling operations for the Oyo well #7 as soon as the rig is assigned with the objectives of increasing production from the Pliocene and exploring the potential of the deeper Miocene.”
In January, the company signed a Deed of Assignment with Transocean Ltd. and Nigerian Petroleum Development Corporation to spud the Oyo Well 7. Drilling was expected to commence in April.
The operator will drill the Oyo 7 development well, which is meant to increase production of the Pliocene reservoir and test the resource potential of the deeper Miocene interval.
The Oyo field, one of the first oil discoveries made offshore Nigeria, is located on Leases 120 and 121, roughly 43 miles off the coast in a water depth of 1,345 feet.
The Federal Government leased OML 120 block for oil mining in 2002. The appraisal wells were drilled between 2006 and 2007. Initial production from two wells began in December 2009.
Allied Energy serves as the operator of Oyo, holding a 100 percent interest. In April 2010, Pacific Asia Petroleum farmed into the OML and acquired all of Allied Petroleum’s assets in the field.
Information from This Day was used in this report.