[Nigeria] Aje - Front Puffin FPSO

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escveritas
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[Nigeria] Aje - Front Puffin FPSO

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Aje field, Nigeria

The Aje oil and gas field was discovered in 1996 with Aje-1 well. After several appraisal wells, the field started production in May 2016 via the Front Puffin FPSO. There are two production wells, the Aje-4 with oil production and Aje-5ST2 with oil and gas production.

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In addition to the oil, there is a significant gas-condensate column ready for further development. The oil production in 2020 was around 1,981 bopd.

OML 113 covers an area of 835 sq km offshore Nigeria close to the Benin border and holds the Aje Field, first discovered in 1997, as well as a number of exploration prospects. ADM Energy holds a 9.2% profit interest in the Aje Field.

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The Aje Field is an oil producing asset which is rich in gas and condensate reserves in the Turonian, Cenomanian and Albian sandstones, similar to the producing Jubilee field offshore Ghana. To date five wells have been drilled: Aje-1 and Aje-2 both flow tested oil and gas condensate at high rates and it currently has two producing wells, Aje-4 in the Cenomanian and Aje-5 in the Turonian.

Aje is strategically located 24km offshore Lagos where it benefits from increasing local energy demand, particularly for gas which is viewed as a replacement fuel for diesel and commands a premium. The field is also within close proximity to the West African Gas Pipeline which presents a potential opportunity for gas monetisation in neighbouring countries such as Benin and Togo.

The Government of Nigeria approved the Aje Field Development Plan ("FDP") in March 2014 and by October 2014, the Final Investment Decision ("FID") for the project was agreed. The FDP involves a three phase development programme. Phase 1 will focus on the Aje Cenomanian oil reservoir and include the tie-back of two existing subsea wells and a leased Floating Production Storage and Offloading vessel ("FPSO"). Phase 1 production commenced in May 2016. The planning for Phase 2 is now underway and will see additional wells drilled in order to increase total Cenomanian oil production. Phase 3 will target the development of the Turonian gas condensate reservoir.

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Partner Equity Paying Profit Share
YFP (Operator) 69.0% 22.5% 41.9%
New Age 12.8% 32.1% 24.1%
EER 6.8% 16.8% 12.6%
Panoro (prior to PetroNor deal completion) 6.5% 16.3% 12.2%
ADM Energy 4.9% 12.3% 9.2%
escveritas
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Re: [Nigeria] Aje

Unread post by escveritas »

PetroNor E&P ASA: Update on Aje Transactions

Oslo, 23 May 2022:

With reference to the stock exchange announcement made 27 January 2022, and the update provided 2 May 2022, regarding the government consent provided to PetroNor E&P ASA’s (OSE ticker: PNOR, “PetroNor”) acquisition of Panoro’s ownership interest in Offshore Mining Lease no. 113 (“OML 113”) offshore Nigeria, containing the Aje oil and gas field, and for the transfer of OML 113 to Aje Production AS (“Aje Production”).

PetroNor is pleased to announce that, as an interim step towards completion of the transaction, PetroNor and the OML 113 Operator, Yinka Folawiyo Petroleum (“YFP”) have executed amendments to agreements for the formation of the jointly owned Aje Production, originally signed on 5 December 2019.

The amendments provide for YFP’s contribution to Aje Production being limited to the shareholding in the YFP DW company. As a consequence PetroNor’s ownership will be increased to 52% and Aje Production will hold a 15.5% participating interest and an economic interest in the order of 38.755 % in OML 113 during the majority of the project period. YFP has undertaken to align its voting rights with Aje Production’s objectives in the development of the Aje field.

PetroNor and Panoro continue to finalise documentation to complete other elements of the transaction which is expected to take place before 30 June 2022 as previously announced. All other terms and conditions of the transaction remain unchanged
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