Oil and gas investment company ADM Energy which in March agreed to invest in the development of the Barracuda oil field in OML 141, an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria, has signed a deal with Eunissel to explore collaboration to develop the Barracuda.
Under the term of the agreement, ADM and Eunisell, the Nigerian-owned oil and gas production solutions company, will explore collaboration opportunities to carry out the development of Barracuda Field in OML 141 and associated work-related activity in Nigeria.
"It is the intention of both parties, together with the risk-sharing consortium in respect of Barracuda Field, that a formal agreement will be entered into in advance of any work commencing," ADM said.
"Eunisell has decades of experience in engineering, production, operations and enhanced production techniques within Nigeria and the Parties intend to work together to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda field in which ADM recently invested. Activities under the intended scope of work may include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services," ADM added.
Following discussions, Eunisell 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.
Osamede Okhomina, CEO of ADM Energy plc, said: "The collaboration agreement with Eunisell, one of Nigeria's leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold. With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs. We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141. "
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 onstream.
The intention is that ADM’s financing partner Dubai Bridge Investments may fund certain development costs (terms and conditions are still to be finalised).
Based on existing Barracuda data and field analogues, ADM estimates recoverable oil resources of 73 million barrels from the D-1B reservoir with several other potential reservoir leads to be further appraised after initial production. ADM considers that there may be an opportunity to further increase field productivity from further drilling in the following years.