By Gift Eguavoen with agency report
ADM Energy Plc has assumed a controlling interest in a risk sharing agreement (RSA) for the development of the Barracuda field in OML 141 offshore Nigeria.
The company acquired a 51% stake in K.O.N.H. UK, which has a 70% indirect interest in the rights, benefits, and obligations under the agreement relating to the Barracuda area.
ADM will provide technical and financial support to the RSA consortium in exchange for favourable accelerated economics and a 15% net profit interest in the field.
The company believes initial production of 4,000 b/d could be achieved in 2H 2021, with potential to increase productivity via drilling of six wells by 2026 to around 23,000 b/d.
Development would also entail installation of a 12-km (7.5-mi) pipeline to Brass Export Terminal, cutting opex from the current $20/bbl to $12/bbl.
Offshore quotes Osamede Okhomina, ADM’s CEO, as saying: “The expectation is for Barracuda field to come onstream later this year following the drilling of a new well…”
Barracuda is in the northwest part of OML 141 in the swamp/shallow waters of the Niger Delta.
Tenneco drilled three wells in 1967 and CNOOC one in 2007, which penetrated oil-bearing C3 and D-1B sands said to be typical of the stacked delta top and prodelta reservoirs in faulted listric settings in this area.
Barracuda-5 would be drilled for a flow test in 4Q 2021 which, if successful, would be brought onstream. ADM’s financing partner Dubai Bridge Investments may fund certain development costs, according to Offshore report.
ADM estimates recoverable resources of 73 MMbbl from the D-1B reservoir with other potential leads to be further appraised following initial production.