Zenith Power Ltd., an vitality firm with property in Africa and Europe, has introduced that it introduced a proposal to the related Ministry within the Republic of Benin for the award of an preliminary nine-year licence to function Block 1 containing the Sèmè oilfield, offshore Benin.
Block-1 is a confirmed oilfield, with important unexploited potential, having estimated recoverable reserves (P2) of 22-28 million bbl and 428 billion ft3 of pure fuel (Kerr McGee 2005). It has produced a reported 22 million bbl of oil to this point, with final manufacturing having taken place in 1998. It has a historic restoration issue of twenty-two%, leaving important margin for enchancment of the restoration issue utilising fashionable completion strategies, horizontal drilling, and improved 3D seismic. It final produced at a charge of roughly 2000 bpd. 23 wells have been drilled in Block-1, with the final nicely having been drilled in 2009 by South Atlantic Petroleum (SAPETRO). This nicely found oil, nevertheless, as a result of prevailing oil value on the time (approx. US$30) it was deemed uncommercial. Positioned in shallow water (30m) offshore and with onshore amenities and tank farm for processing of oil manufacturing it’s a important improvement and exploration potential within the rising Syn-Rift play extending from neighbouring Nigeria
Andrea Cattaneo, Chief Government of Zenith, commented: “We’re delighted to have submitted this Provide for what’s an especially thrilling alternative in Benin, representing the biggest and most potential oilfield within the nation. Block-1 has important untapped, independently assessed oil and fuel reserves, a confirmed historical past of fabric oil manufacturing and present discipline infrastructure. These key qualities make it a probably extremely enriching addition to our portfolio and totally fulfill the important thing standards defining our progress technique. Benin is a steady and enticing jurisdiction for international funding, and we glance ahead with nice enthusiasm to working intently with the native authorities to make sure we obtain a fruitful and enduring partnership within the occasion our Provide is accepted.”
The Firm has introduced a proposal that outlines sure funding commitments and phrases to be negotiated as a part of an award for an preliminary nine-year licence.
The Provide incorporates particular particulars surrounding how the corporate will restore and develop the productiveness of Block-1. Particular geological consideration will probably be directed in the direction of creating the rising Cretaceous Play alongside the West African coast, which has confirmed to be a extremely prolific basin extending from Côte d’Ivoire, Ghana to the West, to the east in Nigeria, with the massive ‘Ogo’ oil and fuel discovery, in addition to producing within the Aje Discipline.
If Zenith’s Provide for Block-1 is accepted, Zenith will progress in finishing a rigorous due diligence course of and start negotiations with the Ministry geared toward finalising a draft Manufacturing Sharing Settlement to be accepted by the legislature of Benin (in accordance with the Hydrocarbon Code).
Operationally, following potential acceptance of the provide, the corporate will search to make use of the present infrastructure put in in 2015, the place earlier improvement was stalled as a result of low oil value atmosphere on the time, to quickly restore industrial manufacturing within the present excessive oil value local weather for the advantage of the residents of the Republic of Benin and Zenith Power shareholders.
As a part of the provide, the corporate has additionally introduced a complete social improvement plan, outlining agricultural group engagement initiatives geared toward fostering productiveness and native employment, along with a sustainable improvement plan that takes into consideration the pure historical past of the area and locations environmental sustainability on the coronary heart of the corporate’s enterprise improvement actions in Benin.
Learn the article on-line at: https://www.oilfieldtechnology.com/drilling-and-production/22092022/zenith-energy-has-presented-an-offer-for-the-sm-field-in-benin/