TotalEnergies’ discovery at Ntokon within the Niger Delta is more likely to be Nigeria’s greatest shallow water discovery in a decade.
That’s what Gail Anderson, Wooden Mackenzie’s Director of Upstream Analysis, outlined in an announcement despatched to Rigzone just lately, including that the discover “reveals that there’s nonetheless loads of working room within the shallow water Niger Delta”.
Within the assertion, Wooden Mackenzie revealed that it estimates the sphere may maintain sources within the vary of 300 million barrels of oil equal to 400 million barrels of oil equal, primarily based on analogous internet pay of shallow water discoveries within the Tertiary Agbada formation of the Niger Delta, and above-average restoration from prime quality reservoirs.
“Assuming 320 million barrels of oil equal of reserves, a wellhead platform improvement of 60-70 meters water depth with as much as 30 wells and a multi-phase pipeline to Ofon may obtain first oil in 2029,” Anderson mentioned within the assertion.
“This is able to generate a wholesome IRR of 24 p.c, primarily based on the present concession phrases, with the understanding that the JV won’t convert to the Petroleum Trade Act fiscal phrases,” Anderson added.
Wooden Mackenzie highlighted within the assertion that its evaluation notes that filling the Ofon amenities and the oil terminal will considerably lower emissions depth, “whereas a ready-made gasoline export route will make Ntokon a zero-flare improvement”.
“This demonstrates the benefits of shorter-cycle tie-backs over costlier stand-alone developments for each price financial savings and decrease emissions,” Anderson mentioned within the assertion, however warned that “there are challenges”.
“Nigeria shouldn’t be recognized for brief lead-times, notably the place JV tasks are involved,” Anderson added.
“Ntokon will present a take a look at within the face of stiff world competitors to see if all events may shortly progress lower-cost, lower-carbon tasks and permit Nigeria to kick-start desperately wanted funding and recuperate its declining manufacturing,” Anderson went on to state.
Ntokon Oil and Gasoline Discover
Final week, TotalEnergies introduced the Ntokon oil and gasoline discovery on OML 102 offshore Nigeria.
The Ntokon-1AX discovery properly encountered 38 meters of internet oil pay and 15 meters of internet gasoline pay, whereas its side-track Ntokon-1G1 encountered 73 meters of internet oil pay, in well-developed and wonderful high quality reservoirs, TotalEnergies mentioned in an announcement posted on its web site. Ntokon-1G1 examined efficiently as much as a most price of about 5,000 barrels per day of 40° API oil, the corporate added.
Ntokon is deliberate to be developed by a tie-back to the Ofon area amenities on OML 102, that are positioned 20km away, TotalEnergies highlighted within the assertion.
“The Ntokon discovery opens a promising outlook for a brand new tie-back improvement’’, Nicolas Terraz, the President of Exploration and Manufacturing at TotalEnergies, mentioned in an organization assertion.
“After the start-up of manufacturing of the Ikike tie-back on OML 99 in 2022, this new success within the space additional demonstrates the potential of close by exploration to create worth inside our low price, low emission technique,” he added.
OML 102 is operated by TotalEnergies EP Nigeria with a 40 p.c curiosity, alongside associate NNPC Ltd, which holds the remaining 60 p.c stake.
Again in July final yr, TotalEnergies introduced the beginning of manufacturing from the Ikike area in Nigeria. The Ikike platform is tied again to the present Amenam offshore amenities by a 14km multiphase pipeline, the corporate revealed in that assertion, including that it might ship peak manufacturing of fifty,000 barrels of oil equal per day by the top of 2022.
“TotalEnergies is happy to begin manufacturing at Ikike, which was launched a couple of months earlier than the Covid pandemic, and whose success owes loads to the complete mobilization of the groups,” Henri-Max Ndong-Nzue, the Senior Vice President of Africa Exploration and Manufacturing at TotalEnergies, mentioned in an organization assertion on the time.
“By tapping discoveries near present amenities, this undertaking matches the corporate’s technique of specializing in low-cost and low-emission oil tasks,” Ndong-Nzue added.
OML 130 Deep Offshore
Final month, TotalEnergies introduced the renewal of the manufacturing license on the OML 130 block in Nigeria for 20 years.
OML 130 block accommodates the “prolific” Akpo and Egina fields, which got here into manufacturing in 2009 and 2018, respectively, TotalEnergies highlighted in that announcement, including that, in 2022, manufacturing amounted to 282,000 barrels of oil equal per day. Almost 30 p.c of that was gasoline despatched to the Nigeria LNG plant, “notably contributing to Europe’s power safety”, TotalEnergies identified within the assertion.
The manufacturing start-up from Akpo West, a short-cycle undertaking, is predicted by the top of 2023, in accordance with the corporate, which outlined that the block additionally accommodates the Preowei discovery, which it mentioned is to be developed by tie-back to the Egina FPSO.
“By the OML 130 license renewal, TotalEnergies is happy to proceed its contribution to the event of Nigeria’s oil and gasoline sector,” Ndong-Nzue mentioned within the assertion.
“This 20-year extension will allow us to maneuver ahead with the FEED research on the Preowei tie-back undertaking which goals to valorize a discovery utilizing present amenities consistent with firm’s technique specializing in low-cost and low-emission belongings,” the TotalEnergies SVP added.
TotalEnergies Upstream Nigeria Restricted operates OML 130 with a 24 p.c curiosity, in partnership with CNOOC (45 p.c), Sapetro (15 p.c), Prime 130 (16 p.c), and the Nigerian Nationwide Petroleum Firm Ltd because the concessionaire of the PSC.
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