Commissioning of the FPSO Front Puffin at the deepwater Aje oil field offshore Nigeria has been completed, according to partner Panoro Energy.
The vessel is now on hire following the 72-hour test, although stabilised production targets are still to be achieved due to mechanical issues and Nigerian regulatory approvals.
This process could continue until year-end, so production will likely continue at a restricted rate of around 7,000-8,000 b/d. Panoro expects the first crude oil lifting from the FPSO to take place at the end of August.
Various measures have brought down the project’s operating costs, the company added.
Laboratory analysis of Aje’s oil has revealed a high quality grade of around 42° API. Several international oil companies and trading houses have expressed interest in purchasing the crude.
Work continues for planning of Aje Phase 2, involving additional Cenomanian oil wells, and Phase 3 (Turonian gas and condensate), and in evaluating the wider exploration potential on the OML 113 lease.
Off Gabon, Panoro is a partner in the Harvest Natural Resources-operated Dussafu project.
Discussions continue with potential farm-in partners and work continues on development options.
John Hamilton, the company’s CEO, said: “At Dussafu, recent developments have reinforced our view of its significant potential, where prospects A and B have a combined P50 of 482 MMbbl of gross unrisked prospective resources.
“Both of these prospects are within the exclusive exploitation authorization area. We are expecting to agree on a forward plan for the exciting Dussafu project in the coming months.”
The first two wells in Aje Are expected to peak at 12,000 barrels of oil per day, and the flow rates would increase as more wells are drilled on the field.
However, of greater significance also is the disclosure that the oil field holds untapped reserves of about 650 billion cubic feet (bcf), which if harnessed in two to three years’ time, could supply Lagos, Nigeria’s commercial hub, all the gas feedstock it needs for the thermal power stations and other manufacturing concerns domiciled in the state and its environs.
Oil produced from the Aje field will be stored in the Front Puffin which has a production capacity of 40,000 barrels of oil per day (bpd) and storage capacity of 750,000 barrels.
Located in the extreme western part offshore Nigeria, adjacent to the Benin border in the Dahomey Basin, the field is situated in water depths ranging from 100 to 1,500 metres, about 24 kilometres from the coast.
The field is situated 64 kilometres from Lagos and 12 kilometres close to the West African g John Hamilton, CEO of Panoro, CEO of the company, while commenting when the first oil was struck said that his company was extremely pleased to have reached first oil production at Aje, offshore Nigeria.
“This is a transformational milestone and establishes Panoro as a full cycle E&P company. In Gabon, we continue to see enormous potential upside at Dussafu where we are working on securing partners to drill an exploration well. We feel this well will be the catalyst to move the project forward and unlock its inherent value. Having achieved production at Aje, we have established a strong platform from which to grow Panoro and add value for our shareholders. Looking forward, our strategy is to now expand our portfolio by acquiring further high quality production and development assets in West Africa,” Hamilton explained.
