Continental Focus, International Reach

Two Wells to Come Onstream for Seplat in Q2

Thursday, March 7, 2019

In its year-end results, Nigerian independent Seplat Petroleum said that it saw the renewal of its OMLs 4,38 and 41 for a further 20 years in mid-Q4. The new expiry date granted by the Ministry of Petroleum Resources is October 21, 2038.

Seplat holds a 45% working interest in OMLs 4, 38 and 41 and in 2018 production from the licenses accounted for 92% of Seplat’s total oil production and 100% of Seplat’s gas production.

In connection with the license renewal, Seplat paid in full a Renewal Bonus of $25.9 million, thus ensuring all conditions for license renewal had been met.

Rig based activity and other capital projects on the licenses was limited in the year to the drilling of one new gas production well at the Oben field and the workover on one further existing gas well.

Upgrades to the liquid treatment infrastructure at OMLs 4,38 and 41 were also made that will enable Seplat to inject export grade dry crude via alternative routes and at the same time eliminate crude handling charges that have historically been incurred on water in the wet crude injected into the TFS.

At OML 53, the company re-entered two wells drilled by the previous operator at the Ohaji South oil field in order to complete them as oil producers. Seplat expects the two wells to be brought onstream in Q2 2019 when the connection pipeline is completed, with the wells expected to flow at a combined initial rate for the joint venture of approximately 5,000 bpd.