Nigeria’s OML 40 to start producing again

elandIn Nigeria Eland Oil & Gas and its partner NPDC are expected to restart two Opuama wells on OML 40 that were shut-in over six years ago. The pair are targeting production of about 2,500 bpd in Q4.

Following the restart the partners will begin drilling the first of six more wells on OML 40. According to analysts these wells will be drilled with a very low international cost curve that should pay the partners back in around three months.

“Generally, the Delta subsurface performs strongly but the surface issues (access, infrastructure and partnerships) present greater challenges,” said Canaccord in a note to clients. “The first of these now appears resolved; the second is underway but will be on-going; and the third, with NPDC as a relatively new operator, is still taking shape. We look forward to production from two existing Opuama wells this autumn at an anticipated combined 2,500 barrels a day and this will clearly be an important milestone for the company.”

 

Information from Petroleum Africa was used in this report.

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