Yinka Folawiyo Petroleum Co. (YFP) and its partner have decided to put drilling plans for the Aje field offshore Nigeria on hold.
 |
|
Map of Aje, from Panoro. |
The Aje-6 well was to be drilled to increase oil production from the field, however, partner MX Oil says that “until the partners have concluded as to the most appropriate next steps, the drilling of this well will be deferred.”
"Given the potential scale of the gas opportunity versus the risk and reward of drilling additional oil wells, it makes sense for the partners to consider and reflect on what the next stage of the development should be. This discussion is currently ongoing and I look forward to updating the market in due course as the thinking develops," says MX Oil CEO Stefan Oliver.
The Aje field, in OML 113, covers 835sq km offshore Nigeria close to the Benin border, and is expected to hold significant resources of gas.
“The partnership has been progressing the field development plan for the development of the gas and has also held discussions with various potential gas off-takers,” says MX Oil. “The partners in the Aje Field are therefore currently considering whether it would be more appropriate for the next stage of the field development to focus on gas production rather than drilling additional oil wells.”
In 2016, oil production started from the Aje field. The Aje-4 well, the first well to go into production, has continued to produce since the date of first production. After an initial period of decline associated with rising water cut, production has now stabilized, the company says.
MX says that production from the Aje-5 well has been limited and has required subsurface intervention, which is currently in the process of being completed, and will include re-connection to the subsea tree.
Partners in Aje include YFP as the operator, New AGE (African Global Energy), Energy Equity Resources, Jacka Resources, Panoro Energy and MX Oil.
Read more:
Subscribe
