Emeka Okwuosa, Chief Executive Officer of Oilserv, says he is undeterred by the news that the Benin Basin, of recent, has been a graveyard of E&P dreams.
Oilserv is mostly a midstream service, EPCI company, with interests in engineering studies, E&P and power distribution. The company’s E&P subsidiary, Frazoil, holds an acreage, Block 3, in the basin, in Benin Republic, so Okwuosa’s perspective here is that of a licence holder. “I know why other investors have made mistakes and I know what I am looking for”.
The facts that Okwuosa is dealing with are stubborn. Conoil drilled an exploration well on the boundary between Benin and Niger Delta Basins in 2018, which failed spectacularly. For a full year, Yinka Folawiyo &Co have been unable to increase production on the Aje field (the only Nigerian producing field located in the Benin Basin) from 3,000BOPD, let alone get anywhere close to the prognosed 10,000BOPD peak. SAPETRO exited its two assets in Benin Republic about two years ago after four unsuccessful wells in the basin.
Optimum/ Lekoil/Afren discovered the Ogo field in OPL 310 in the Benin Basin in 2013, but the jury is out on what the technical/geoscientific experience would be, when the work programme moves into the next phase of appraisal. “I have an advantage. I also have a strong belief that it will work out well even though it is still a risk”, says Okwuosa.
Source: Africa Oil + Gas Report