After agreeing to invest $1.3million, oil and gas investment company ADM Energy PLC has unveiled fresh plans for the development of Barracuda oil field in OML 141, an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria.
This will ADM energy recover up to 73 million barrels from the D-1B reservoir, based on existing Barracuda data and field analogues as the firm latest investment is made by way of an acquisition of a 51percent interest in KONH UK Limited, which holds an indirect interest in a risk-sharing agreement (RSA) for the field.
With acquisition expected to be completed in Q2 2021, ADM Energy has entered into a non-binding collaboration agreement with OES Energy Services Limited, Nigeria’s largest swamp rig services provider, and 4Mation Drilling Services Limited, a solution provider in the energy sector.
Read Also: Buhari overrides DPR, returns 4 oil blocks to NNPC
The three companies plan to explore opportunities to develop Barracuda Field in OML 141 and associated work-related activity in Nigeria.
According to ADM Energy, the intention of the parties, alongside the risk-sharing consortium in respect of Barracuda Field is for a formal agreement in advance of any work starting. The collaboration agreement may be terminated by mutual consent.
Subject to any potential formal agreement, the plan is for OES Energy to provide the swamp drilling rigs required for the Project. 4Mation would provide a variety of project management services including well engineering services, technical personnel, security and logistics.
In addition, OES and 4Mation may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract, ADM said.
“These agreements are important steps in ensuring we are ready to deliver on our drilling plans later in the year, which will bring the project on stream and significantly ramp up our production volumes,” Osamede Okhomina, CEO of ADM Energy plc said.
The Barracuda Field sits in the northwest part of OML 141, an Oil Mining Licence area covering 1,295km2 in the swamp/shallow waters of the Niger Delta in Nigeria.
Four existing wells drilled in 1967 (three wells by Tenneco) and 2007 (one well by CNOOC) penetrated oil-bearing high-quality C3 and D-1B sands typical of the stacked delta top and prodelta reservoirs in faulted listric settings common in this area.
According to ADM, the plan is for a fifth well to be drilled (Barracuda-5) in order to carry out a flow test in Q4 2021 which, if successful, will be brought on stream.
