Nigeria OML 18

OML 18 is located in Rivers State in the Southern Niger Delta. Comprising part mangrove swamp, the concession covers 1,035 km2 and contains nine existing fields; Akaso, Alakiri, Asaritoru, Awoba (straddling OML 18 and OML 24 - governed by an interim unitisation arrangement dividing production from this field between the OML owners on an equal basis), Bille, Buguma Creek, Cawthorne Channel, Krakama and Orubiri (figure 1). Cumulatively, they have produced over a 1 billion bbls of oil/condensate and 1.8 TCF of gas.

OML-18 2017 

Figure 1 1: Location map showing the OML 18 block highlighing fields and infrastracture

Geologically, OML 18 lies in the eastern part of the Cenozoic Niger Delta (a typical wave and tidally dominated delta) where the main reservoirs are the sandstones of the heterolithic Agbada Formation (Eocene to Recent) deposited within delta-front, delta-topset, and fluvio-deltaic environments. The seismic data across the concession defines three megastructural trends; Northern (Alakiri, Buguma Creek, Orubiri and Asaritoru), Central (Krakama, Cawthorne Channel and Awoba) and Southern (no discoveries but at least one very good prospect identified).

The concession currently has four flow stations (all, except Alakiri, have associated gas export facilities), a central gas gathering plant and a non-associated gas plant. Oil production, from the Cawthorne, Akaso and Alakiri fields, is transported to Bonny Oil terminal via the Nembe Coastal Trunk line (NCTL) with produced gas currently being exported to the Notore fertilizer plant (northeast of the Orubiri field).

With over 150 wells and a merged 3D seismic survey, covering all of the producing fields on OML18, the dataset available is significant and provides a powerful resource to assist in the re-development of these fields, under Eroton’s operatorship. OML18 production has already seen significant increases, rising from approximately 10,000 bopd of oil in March 2015 to approximately 50,000 bopd of oil and approximately 50 MMscfpd of gas in April 2016.

Based on the June 2016 Competent Persons Report by Petrovision Energy Services Ltd. the Operator has proposed a significant oil and gas development drilling programme that will involve capital expenditure of approximately US$1.5 billion in the 2P case over the next five years that is expected to see oil production increase from approximately 50,000 bopd to 115,000 bopd (including production losses and downtime) and sales gas from 50 MMscfpd to 485 MMscfpd by 2020. This includes 50 notional new wells (which may include side track on some existing wells) and 26 gas wells utilising two rigs over a five year period to effectively produce the undeveloped reservoirs, un-drained regions of the reservoirs and accelerate the recovery of identified reserves.

OML 18 Gross reserves (01/01/2016)
- 1P 2P 3P
Oil + condensate (mmbbls) 389 576 777
Gas (Bcf) 3,119 4,213 5,080

Further details regarding San Leon’s involvement in OML18, including the structure/production arrangements, can be found under the investors section of this website (‘OML Production Arrangement’). 

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