TotalEnergies’ discovery at Ntokon in the Niger Delta is likely to be Nigeria’s biggest shallow water discovery in a decade.
That’s what Gail Anderson, director of Upstream Research at Wood Mackenzie, explained in a statement recently sent to Rigzone, adding that the find “shows that there is still a lot of room to run in the shallow waters of the Delta Niger”.
In the statement, Wood Mackenzie revealed that it estimates the field could contain resources in the range of 300 million barrels of oil equivalent to 400 million barrels of oil equivalent, based on net pay-as-you-go discoveries of shallow waters in the Agbada Tertiary formation of Niger. Delta, and above average recovery of high quality reservoirs.
“Assuming 320 million barrels of oil equivalent in reserves, a 60-70 meter water depth wellhead platform development with up to 30 wells and a multi-phase pipeline to Ofon could achieve first oil in 2029,” Anderson said in the statement.
“This would generate a healthy IRR of 24 percent, based on the terms of the current concession, with the understanding that the JV will not convert to the tax terms of the Petroleum Industry Act,” Anderson added.
Wood Mackenzie highlighted in the statement that its analysis indicates that filling the Ofon facilities and the oil terminal will significantly reduce emissions intensity, “while a ready gas export route will make Ntokon zero development”.
“This demonstrates the advantages of shorter-cycle links over more expensive stand-alone developments for both cost savings and lower emissions,” Anderson said in the statement, but warned that “there are challenges” .
“Nigeria is not known for short delivery times, especially when it comes to JV projects,” Anderson added.
“Ntokon will provide a test against tough global competition to see if all stakeholders can move forward quickly on low-cost, low-carbon projects and enable Nigeria to initiate desperately needed investment and recover its declining production,” he continued Anderson. declare
Ntokon Oil and Gas Find
Last week, TotalEnergies announced the Ntokon oil and gas discovery in OML 102 offshore Nigeria.
The Ntokon-1AX discovery well encountered 38 meters of net oil pay and 15 meters of net gas pay, while its secondary Ntokon-1G1 encountered 73 meters of net oil pay, in well-developed reservoirs and of excellent quality, TotalEnergies said in a statement published on its website. Ntokon-1G1 successfully tested up to a maximum rate of about 5,000 barrels per day of 40° API oil, the company added.
Ntokon is expected to be developed through a connection to Ofon’s field facilities at OML 102, which are 20 km away, TotalEnergies said in the statement.
“The Ntokon discovery opens up a promising prospect for new tie-up development,” said Nicolas Terraz, president of exploration and production at TotalEnergies, in a company statement.
“Following the commissioning of production from the Ikike link at OML 99 in 2022, this new success in the area further demonstrates the potential of nearby exploration to create value within our low-cost strategy and low emissions,” he added.
OML 102 is operated by TotalEnergies EP Nigeria with a 40% interest, together with partner NNPC Ltd, which owns the remaining 60%.
In July last year, TotalEnergies announced the start of production from the Ikike field in Nigeria. The Ikike platform is linked to Amenam’s existing offshore facilities via a 14-kilometer multiphase pipeline, the company revealed in the statement, adding that it will deliver a maximum output of 50,000 barrels of oil equivalent per day at end of 2022.
“TotalEnergies is pleased to start production at Ikike, which was launched a few months before the Covid pandemic, and whose success owes a lot to the full mobilization of the teams,” said Henri-Max Ndong- Nzue, Senior Vice President of Africa Exploration. and Production to TotalEnergies, the company said in a statement at the time.
“By taking advantage of discoveries close to existing facilities, this project is in line with the company’s strategy to focus on low-cost, low-emission oil projects,” added Ndong-Nzue.
OML 130 Deep Offshore
Last month, TotalEnergies announced the renewal of the OML 130 block production license in Nigeria for 20 years.
The OML 130 block contains the “prolific” Akpo and Egina fields, which came into production in 2009 and 2018, respectively, TotalEnergies noted in the announcement, adding that by 2022, production would reach 282,000 barrels of oil equivalent per day. Almost 30 percent of this was gas sent to the LNG plant in Nigeria, “significantly contributing to Europe’s energy security,” TotalEnergies said in the statement.
Production start-up at Akpo West, a short-cycle project, is expected by the end of 2023, according to the company, which noted that the block also contains the Preowei discovery, which it said will be developed by means of ligament. at FPSO Aegina.
“Through the renewal of the OML 130 license, TotalEnergies is pleased to continue its contribution to the development of Nigeria’s oil and gas sector,” Ndong-Nzue said in the statement.
“This 20-year extension will allow us to move forward with FEED studies on the Preowei tie-back project which aims to value a discovery using existing facilities in line with the company’s strategy of focusing on low-cost, low-emission assets “, he added. TotalEnergies SVP added.
TotalEnergies Upstream Nigeria Limited operates OML 130 with a 24% interest, in partnership with CNOOC (45%), Sapetro (15%), Prime 130 (16%) and Nigerian National Petroleum Company Ltd as PSC concessionaire.
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