Page 15 - AfrOil Week 22 2021

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM and put into commercial production.
In 2003, the Oza oilfield was awarded to
Decklar Resources issues Millenium Oil and Gas Co., having won the
field during the 2003 Marginal Fields Licensing
update on Oza-1 re-entry Round. Since Millenium’s acquisition of the Oza
oilfield, approximately $50mn has been spent on
Decklar Resources has announced an update infrastructure in support of a restart of produc-
to operations at the Oza-1 well re-entry at the tion, including an export pipeline to tie the Oza
Oza oilfield in Nigeria, through the Company’s oilfield production into the Trans Niger Pipeline
wholly-owned Nigeria-based subsidiary, Deck- (TNP) which goes to the Bonny Export Termi-
lar Petroleum. The Oza field is located onshore in nal, a lease automatic custody transfer (LACT)
the northern part of Oil Mining License (OML) unit fiscal metering system, infield flow-lines,
11 in Nigeria. manifolds and related production facilities.
Decklar continues to make considerable pro- The Risk Service Agreement (RSA) that
gress on the Oza-1 well re-entry with the camp Decklar and Millenium entered provides Deck-
and all associated infrastructure fully installed lar the majority share of production and associ-
and operational. The major components of the ated cash flow from the Oza oilfield in exchange
drilling rig equipment are being transported to for funding and technical assistance to restart
the field this week and it is anticipated the rig will commercial production and full field devel-
be completely moved, installed and rigged-up opment; the RSA terms include a preferential
within two weeks. Decklar will then commence return of Decklar’s costs plus a share of cash flow
the Oza-1 well re-entry operational activities thereafter. In exchange, Decklar is entitled to
including the initial work of pulling out the exist- priority recovery of its capital from 80% of dis-
ing tubing, running a cement bond log and cased tributable funds. After achieving cost recovery,
hole reservoir logs. Decklar’s profit share is based on a sliding scale and distribution of products from the Depots to
The re-entry activities will then include the starting at 80% and declining to 40% once cumu- retail outlets all over the country, for planning
testing of three oil bearing zones (L2.2, L2.4 and lative production exceeds 10mn barrels. and research purposes.
L2.6) independently and then it is anticipated Decklar is also pleased to announce that it He disclosed that part of the sanctions that
that a final dual-tubing string completion will continues to make good progress on evaluations awaits any petroleum marketer includes the
be installed and the L2.2 and L2.6 zones placed and negotiations for additional proven unde- non-renewal of operational licence which would
into production upon successful testing. The veloped oil and gas fields in Nigeria that have bare the erring marketer from lifting Petroleum
drilling rig is expected to then be skidded on the significant reserves and near-term production products from any depots in the country.
same drill pad as Oza-1 to a new drilling slot and potential. “It is now a prerequisite for the renewal of
a horizontal development well will be drilled in Decklar Resources, May 28 2021 License to Operate (LTO) a retail outlet. The
the L2.4 zone and placed on production. licence is a requirement for lifting petroleum
The Oza-1 well and new horizontal develop- products,” he said.
ment well are anticipated to generate significant DOWNSTREAM DPR, May 31 2021
production levels and cash flow in an abbre-
viated time frame due to the already existing DPR reads riot act to Abia NOC reports on efforts to
infrastructure in place. The Oza development
is anticipated to then continue with one or two independent marketers guarantee fuel supplies
more re-entries on existing wells and additional
development drilling program with a potential Following the expiration of deadline given to to southern Libya
of eight to 10 wells being drilled for the full field all Petroleum Marketers by the Department of
development. Additional early production and Petroleum Resources (DPR) within when to Deputy Prime Minister Ramadan Abu-Jnah,
central processing facilities will be added as register their retail outlets into its e-Station plat- NOC Chairman Mustafa Sanalla, Chairman
required to accommodate additional production form, Abia State Field Office of DPR has advised of Brega Oil Marketing Co. Ibrahim Abu Bre-
levels from field development activities. Petroleum Marketers in the State to cue into the dea, Manager of the Sustainable Development
The Oza oilfield has significant export and platform or risk not having their operational Department of NOC Mukhtar Abduddayem
production capacity through processing facil- license renewed. and the General Manager of Operations for
ities and infrastructure already in place and Recall that the DPR Field Office in Umuahia the Western and Southern Regions of Brega
operational, which will allow for the immediate held a sensitisation programme for Independent Co. Khaled Ouheba, visited Sabha on Saturday
export and sale of crude oil from the Oza-1 well. Petroleum Marketers in February 2021 ahead of morning May 29, 2021, on an inspection visit to
As previously announced, the Oza oilfield the introduction of E-Station platform which the region, and they were received by the elders,
was formerly operated by Shell Petroleum would account for the distribution and move- sages and sheikhs of the region.
Development Co. of Nigeria. The field has three ment of petroleum products. Marketers were The delegation toured the oil depot at Sabha
wells and one sidetrack drilled between 1959 asked to register in the portal before the end of International Airport and the Sabha oil depot to
and 1974. During the period when Shell was the April 2021 or risk being sanctioned. inspect the fuel supply operations to those two
operator, there were two periods of extended Engineer Emmanuel Okoro, the Operation oil depots. They met with workers who told them
production testing from the Oza-1, -2 and -4 Controller DPR Umuahia Field Office, said the about the problems and difficulties affecting the
wells. The field was however never tied into an e-Station was introduced to enable the DPR to oil depots, in order to make the appropriate solu-
export facility, nor was it fully developed by Shell provide statistical information on the inventory tions to guarantee fuel supplies to that area.

Week 22 02•June•2021 www. NEWSBASE .com P15