Page 14 - AfrOil Week 33 2021

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
Decklar Resources provides Oza-1 well re-entry update
Decklar Resources has announced an update to operations at the Oza-1 well re-entry at the Oza oilfield in Nigeria, being performed by the Com- pany’s wholly owned Nigeria-based subsidiary, Decklar Petroleum.
Progress at Oza-1 in Final Preparation for Well Testing Operations: Re-entry operations at the Oza-1 well site continue to progress with completion of critical initial work activities including pulling the existing tubing and the 5.5- inch casing that was inside the 9-inch casing. The 9-inch casing has been scrapped and circulated clean and over to brine completion fluid and a cement bond log has been run to confirm the integrity of the wellbore and cement behind the casing. Cased hole reservoir logs have been com- pleted and analysed and confirm the expected characteristics of the zones targeted for testing. Surface testing facilities and equipment are cur- rently being installed, and it is anticipated that testing of the L2.6 zone will commence early next week. Perforation operations will begin with a testing tubing string run with straddle packers to enable testing of the three isolated individual zones that will be tested.
Production testing operations are planned for the three known oil-bearing zones (L2.2, L2.4 and L2.6), and each targeted zone will be production flow tested independently. All test volumes produced will be exported and sold through the existing production facilities and pipelines. Once testing of all three zones is com- pleted, it is anticipated that a final dual-tubing string completion will be installed, and two of the three zones tested will be placed into produc- tion based upon successful testing. All necessary approvals and permits are in place for the well re-entry, testing and completion.
As previously announced, once the Oza-1 re-entry is complete, the drilling rig is then expected to be skidded on the same drill pad as the Oza-1 well to a new drilling slot and a hori- zontal development well will be drilled in one of the three zones tested in the Oza-1 well. It is anticipated that this well will then be placed on production upon successful testing and completion. The Oza-1 well and new horizon- tal development well are expected to generate significant production levels and generate cash flow in a short time frame utilising the existing infrastructure in place. The Oza oilfield develop- ment is planned to then continue with one or two more re-entries on other existing wells and an additional development drilling program with a potential for eight to 10 wells to be drilled to achieve full field development. Additional early
production and central processing facilities will be added as required to accommodate increased production levels from field development activities.
The Company anticipates that operations are on track for initial production testing to commence immediately following perforating and running the testing string. The Oza oilfield has significant export and production capacity through processing facilities and infrastructure already in place and operational, which will allow for the immediate export and sale of crude oil from the Oza-1 well.
Decklar also continues to pursue and advance evaluations and negotiations for additional proven undeveloped oil and gas fields in Nige- ria that have significant reserves and near-term production potential, including the recently announced acquisition in the Asaramatoru oilfield.
Decklar Resources, August 11 2021
MIDSTREAM
FG attracts $500mn to
gas value chain through
network code
The Department of Petroleum Resources (DPR) has stated that the Nigerian Gas Transportation Network Code (NGTNC) introduced last year to guide open access transportation of natural gas, has already attracted investment proposals of over $500mn.
According to the Director, DPR, Sarki Auwalu, so far, the Department has received investment proposals for power generation, ammonia for fertiliser, domestic LNG, metha- nol, virtual gas pipeline systems, new gas hubs and the establishment of Nigeria gas trading exchange.
Through its Nigerian Gas Flare Commercial- isation Programme (NGFCP), the DPR noted that plans are ongoing to reduce gas flaring from the current single digits of 8% to 5% in the coun- try. Auwalu stated this at an interactive session on the first year of operationalising the network code in Nigeria.
In his words: “Investors across the various gas value chains are telling us that they need DPR support, they need us to create that enabling environment for opportunities. We are looking at an additional $500mn in just one year since we introduced the code. The request is over 500 mcf per day, and this is just for one year. You can imagine how much investment we would attract if we continue with this.”
He noted that with the gas code, investors’ confidence has been boosted as investors are coming to DPR to create more networks for distribution of gas in the country. He noted that the code ensures non-discriminatory access to pipeline systems, guarantees secure, available, reliable and safe gas transmission systems and ensures cost reflective tariffs for pipeline services.
He also added that the code supports the development of matured gas markets and pro- vides a mechanism for effective handling of con- tractual disputes.
DPR, August 11 2021
DOWNSTREAM
PGS releases additional
data to support Niger River
Delta exploration
An additional 1,000 square km of reprocessed 3-D data from OPL 248 is now available. This completes the PGS Niger Delta 2020 Reprocess- ing package and is well-timed for a reassessment of Nigerian offshore exploration opportunities.
P14
w w w . N E W S B A S E . c o m
Week 33 18•August•2021