Lagos oil discovery may boost nation’s reserve by 856mboe

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fasholaThe recent discovery of crude oil in the Lagos area may boost the country’s oil reserve by 856 million barrels of oil equivalent.

Oil was discovered at the Aje field located at Oil Mining Lease 113 and Ogo-1 well located at Oil Prospecting Lease 310.

The gross contingent resources of the Aje field are estimated at 380mboe, while Ogo-1 well, which was recently discovered, is anticipated to contain about 78mboe

However, because of the high potential of OPL 310, Afren, Lekoil and Premium (partners on project) are optimistic that the discovery is likely to be significantly higher than the anticipated 78mboe.

As such, the NSAI, in its most recent independent assessment, evaluated un-risked prospective resources in OPL 310 at 476mboe.

When combined with the 380mboe estimates of Aje fields, OML 113 and OPL 310 may boost Nigeria’s oil reserve and the economy by 856mboe.

The Aje gas and condensate field lies in OML 113 in the Benin Basin, about 24 kilometres offshore Lagos, while the OML 113 licence covers an area of 960 square kilometres and contains several prospects, including the Jubilee and Tweneboa fields.

Yinka Folawiyo Petroleum is the operator of OML 113 with 60 per cent interest, while the remaining 40 per cent is owned by a joint venture of Chevron Nigeria Deepwater, Vitol Exploration Nigeria, Panoro Energy, Energy Equity Resources and Jacka Resources.

OPL 310 is located in the Upper Cretaceous fairway that runs along the West African Transform Margin and lies close to the Aje field, which has been declared commercial.

Aje is primarily a gas condensate field formed in a four-way dip closure trap. It contains gas and oil in the Turonian and Cenomanian reservoirs, and an additional gas layer of the Albian formation.

Gross contingent resources of the Aje field are estimated at 380mboe. Of this, 28 per cent is oil/condensate; 20 per cent is Liquefied Petroleum Gas; and 52 per cent is gas.

Aje field is currently in the development planning stage, with first production expected in 2014. The field is expected to reach a plateau production of 50,000 to 80,000boe a day

The field was discovered by the Aje-1 well in 1996 and flows at the rate of 60.2 million standard cubic feet of gas a day; 1,729 barrels of condensate a day and 2,389 barrels of oil a day.

Afren and LekOil recently made a significant light oil discovery at the Ogo-1 well on the OPL 310 licence.

The well was drilled to a depth of 10,518ft and found a 524ft of gross hydrocarbons, with 216ft of ‘stacked’ net pay.

Before Ogo-1 was drilled, the prospect was estimated at 78million barrels, but Afren said based on the evidence to date, the oil find was likely to be significantly larger than that.

The Chief Executive Officer, Afren, Mr. Osama Shahenshah, said,  “The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the West African Transform Margin.

“Based on evidence to date, targeted resources are likely to be significantly in excess of previous estimates, with some high-potential zones still to be drilled. We look forward to working with our partners to realise the full potential of Ogo and our additional prospects on the licence.”

The Chief Executive Officer, Lekoil, Mr. Lekan Akinyanmi, said, “The discovery of oil in the Ogo-1 well opens up a new oil basin in an under-explored region and represents a possible extension of the Cretaceous play along the West African Transform Margin.

“The discovery is a clear validation of Lekoil’s technical analysis and of our extensive studies on the Dahomey Basin.

According to Shahenshah and Akinyanmi, results to date indicate that the discovered resources in Ogo-1 well can be significantly in excess of P50 estimates prior to drilling.

The discovery of oil offshore Lagos by Yinka Folawiyo Petroleum in 1996 has encouraged increased oil prospecting in the area. Some investors have been issued with Oil Prospecting Licences, and if they discover oil, the potential contribution of Lagos to the country’s oil reserve will increase significantly.

Information from Punch was used in this report.