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Thursday, October 17, 2013
Eland Oil & Gas issued an update on its activities on OML 40 in Nigeria. The fabrication and installation work has been completed to fully replace the three flowlines on the planned existing start-up wells in the Opuama Field. Operational activities in 2013 have been initially focused on replacement of the corroded infield flowlines, refurbishment of the production flowstation, and the repair of the oil export pipeline including the replacement of all corroded and damaged sections. These flowlines have been trenched and overlaid with protective concrete mats at major water crossings. A cathodic protection system has also been installed.
Since the Opuama Production Facility was shut down in March 2006 there has been some deterioration of infrastructure.
Eland is working closely with the operator, NPDC, to re-start production in a challenging operating environment. This joint approach has ensured that the complex issues have been addressed collectively and resolved to provide the best opportunity for an early restart of production on the facility which has been shut-in for seven years
The company said that the drilling of the initial six development wells on the Opuama Field are expected to commence upon the release of the Depthwize Imperial swamp rig currently on a single well assignment with Conoil on OPL 2007. The latest information from the current operator indicates that the rig should be released from location in early-2014.
Les Blair, CEO of Eland Oil & Gas, commented: “Our immediate focus is to restore oil production on OML 40 and we have a close working relationship with the Operator, NPDC, to achieve this goal. In parallel we continue planning for the extensive development drilling campaign on OML 40, starting with six wells on the Opuama Field.
“The delays we have experienced are frustrating but not unexpected in a project of this complexity and in the environment in which we are operating. The management of Eland have significant experience of working in Nigeria and have established excellent working relationships with NPDC and all of our stakeholders in the license area. This will stand the Company in good stead to unlock the value inherent in OML 40, which will be amply demonstrated when the drilling campaign gets underway.”
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