• Thursday, February 29, 2024
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CAMAC Energy awards rig contract for Oyo field


In furtherance of its development and exploration program in 2014, United States-based CAMAC Energy Inc. said a long-term drilling contract had been signed with Northern Offshore Ltd. for the drillship Energy Searcher.

The rig is expected to be delivered to the Oyo field in Oil Mining Lease (OML) 120 offshore Nigeria to commence drilling activities in the first half of 2014.

The signed agreement covers an initial period of one year, with an option to extend the contract for an additional one-year. The company plans to utilise the rig on its multi-year, high-impact development and exploration portfolio.

The Energy Searcher’s capabilities include drilling to total depths of up to 25,000 feet, and in water depths of up to 2,500 feet.

Kase Lawal, chairman and chief executive officer, said, “We are pleased to have executed the rig contract with Northern Offshore, which builds on our relationship, and ensures a highly capable and efficient rig to execute on our transformational development and exploration program in 2014 and beyond.”

The Oyo Oilfield is located about 75 miles off the Southern Nigerian coast in deep-water.

CAMAC Energy has an interest in a production sharing contract (PSC) covering petroleum operations in the Oyo Oilfield under the OML 120 issued by the federal government.

Under the PSC, CAMAC Energy has partnered with Nigerian Agip Exploration Ltd (a subsidiary of Italy’s ENI SpA); the Oyo Oilfield’s other interest holder and operating contractor.

The Oyo Oilfield commenced production in December 2009. The initial two subsea production wells are connected to Armada Perdana, a Floating Production Storage and Offloading (FPSO) vessel.

The FPSO has a treatment capacity of 40,000 barrels of liquids per day, with gas treatment and re-injection facilities, and is capable of storing up to 1 million barrels of crude oil.

CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa.