Page 16 - AfrOil Week 25 2021

AfrOil NEWS IN BRIEF AfrOil

“We look forward to ramping up production as additional wells. The contract provides, among
we continue to progress full-field development other things, that the drilling rig can be on loca-
at the Oza Field. The cash flow from this field tion as early as December of this year, with the
will support Decklar’s strategy of consolidating exact timing dependent on other commitments
and re-establishing production at this and other related to the rig.
similar high-margin proven undeveloped con- George Maxwell, CEO, commented: “We
ventional oil fields in Nigeria.” continue to work with our joint owners at Etame
The Oza oilfield Summary: As previously on our shared goal of executing another suc-
announced, the Oza oilfield was formerly cessful drilling campaign that can significantly
operated by Shell Petroleum Development Co. add production and reserves. Success on all
(SPDC) of Nigeria. The field has three wells and four wells contained within the drilling cam-
one sidetrack drilled between 1959 and 1974. paign could result in an increase in production
During the period when Shell was the operator, of 7,000 to 8,000 gross barrels of oil per day and
there were two periods of extended production significant reserve additions of up to 10.2 mil-
testing from the Oza-1, -2 and -4 wells. The field lion barrels of oil for the two appraisal wellbores
was, however, never tied into an export facility, that would be converted from resources into 2P
nor was it fully developed by Shell and put into reserves at year-end 2022. We are excited to get
commercial production. our next drilling campaign underway later this
In 2003, the Oza oilfield was awarded to Mil- year.”
lenium Oil and Gas Company, having won the Maxwell continued: “With the benefit of our
field during the 2003 Marginal Fields Licensing hedging programme, our capital commitments
Round. Since Millenium’s acquisition of the Oza over the next 12 months are expected to be fully
oilfield, approximately $50mn has been spent on funded through our cash flow and cash on hand.
infrastructure in support of a restart of produc- Additionally, we have several initiatives under-
tion, including an export pipeline to tie the Oza way geared toward maximizing our netbacks. work. For natural gas pipelines, it eliminates the
oilfield production into the Trans Niger Pipeline We remain firmly focused on maximizing share- need to flare product.
(TNP), which goes to the Bonny Export Termi- holder returns while we continue to progress our In its typical configuration, the SmartPlug
nal, a lease automatic custody transfer (LACT) refreshed strategic objectives to deliver accretive system meets the criteria for a true double block
unit fiscal metering system, infield flow-lines, growth.” isolation. In this case, two plug modules pro-
manifolds and related production facilities. VAALCO Energy, June 17 2021 vided a double barrier to isolate pipeline con-
The Risk Service Agreement (RSA) that tents at 80 bar (1160 psi) line pressure; a third
Decklar and Millenium entered provides Deck- module allowed for in-situ pressure testing of the
lar the majority share of production and associ- MIDSTREAM new valves at 132 bar (1915 psi) while the isola-
ated cash flow from the Oza oilfield in exchange tion remained undisturbed and in place.
for funding and technical assistance to restart TDW completes isolation The successful SmartPlug isolation remained
commercial production and full field devel- in place for 32 days, completing the required
opment; the RSA terms include a preferential offshore Nigeria work scope within the shutdown period.
return of Decklar’s costs plus a share of cash flow Working closely with Strides and the oper-
thereafter. In exchange, Decklar is entitled to T.D. Williamson (TDW), the global solutions ator, TDW overcame significant pandemic-re-
priority recovery of its capital from 80% of dis- provider, completed its first SmartPlug® isolation lated mobilisation challenges to prepare for
tributable funds. After achieving cost recovery, in offshore Nigeria, working for a major operator and perform the successful isolation within the
Decklar’s profit share is based on a sliding scale through its local partner, Strides Energy & Mari- Operator’s urgent timetable. Using videocon-
starting at 80% and declining to 40% once cumu- time Ltd. (Strides). ferencing capabilities enabled stakeholders in
lative production exceeds 10mn barrels. Isolating the 267-km (165-mi) natural gas Nigeria, Norway, The Netherlands and the UK
Decklar is also pleased to announce that it pipeline enabled the safe change-out and leak to virtually witness the factory acceptance test-
continues to make good progress on evaluations testing of platform valves without depressuriz- ing (FAT). These efforts allowed TDW to deliver
and negotiations for additional proven unde- ing the system. the equipment in just four weeks.
veloped oil and gas fields in Nigeria that have This was the latest in a series of 47 SmartPlug “This pandemic has forced us all to rethink
significant reserves and near-term production operations TDW has provided for the operator the traditional ways we go about our business,
potential. since 2001. The companies have worked together from communication with our clients as well as
Decklar Resources, June 17 2021 all over the globe, including Bangladesh, Brunei, within our own organization, and also in the way
Malaysia, the Netherlands, Norway, the Philip- we utilize remote technologies at our disposal,”
VAALCO secures rig for pines, the UK and the US. TDW Project Manager Morgan Swanlund said.
“The first project in Nigeria, amid the pan-
Once the SmartPlug isolation tool was set,
2021/2022 drilling campaign demic, further extends our shared track record crews performed round-the-clock monitoring,
of success and adds to the extensive portfolio of both in person during the day and remotely (via
VAALCO Energy has announced that in con- services TDW offers across the African conti- satellite) by teams in Norway and Australia at
junction with its 2021/2022 drilling programme, nent,” Vice President, Eastern Hemisphere Jeff night, when access to the platform was restricted.
planned to begin later this year, it has executed a Wilson said. Wilson said this provided a foundation for future
contract with Borr Jack-Up XIV Inc., an affiliate SmartPlug non-intrusive isolation technol- projects leveraging TDW remote monitoring
of Borr Drilling, to drill two development wells ogy is designed to minimise production down- technologies.
and two appraisal wellbores with options to drill time during critical repair and replacement T.D. Williamson, June 14 2021

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