Oyo oil well set for production, says CAMAC

Nigeria’s oil and gas production may soon receive a boost, courtesy CAMAC Energy Incorporation, following the completion of drilling operations on its Oyo-8 well in the offshore basin.

Confirming this development in a statement recently, CAMAC said the well is now ready to commence oil production.

The Oyo Field is located in deepwater (200-500 meters) approximately 75 km (46 mi) offshore Nigeria.

Oyo-8 was successfully drilled to a total depth of 6,059 feet, and encountered four new oil and gas reservoirs with a total gross hydrocarbon thickness of 112 feet, based on results from the logging-while-drilling data, reservoir pressure measurement, and reservoir fluid sampling.

Chairman and Chief Executive Officer, CAMAC, Kase Lawal, said: “The successful well completion operations on Oyo-8 and our readiness to commence oil production are significant milestones for creating long-term shareholder value. The delay in commencing production due to the ABS certification process on the FPSO is very unfortunate; however, we are confident that Bumi is taking all necessary steps to complete the process as quickly as possible.”

Oyo-8 is hooked up to the FPSO Armada Perdana owned by Bumi Armada Berhad (Bumi). However, CAMAC, he said has been informed by Bumi that the FPSO is not ready to receive oil production from the well due to class certification inspections of the vessel’s mooring lines being conducted by the American Bureau of Shipping (ABS).

Bumi estimates the inspections to be completed within two weeks, at which time Oyo-8 will be allowed to produce into the Floating Production Storage and Offloading vessel (FPSO).

The company however noted that it was demobilizing the Sedco Express (DW semisub) from the Oyo-8 location in the meantime, and the rig will then mobilize to the Oyo-6 well location to continue its planned Oyo field operations. “The Company does not anticipate further changes to the project schedule of the Oyo-7 well as a result of the FPSO inspection delays,” it added.

The Oyo Field commenced production in phases since December 2009. The wells are connected to the Armada Perdana FPSO.

The FPSO has a capacity of 40,000 barrels of oil per day (bbls/d), with gas treatment and re-injection facilities, and can store up to 1.1 million barrels of crude oil.

The associated gas is re-injected into the Oyo Field reservoir to maximize oil recovery. The Oyo field averaged 1,300 barrels of oil per day (bpd).