Yinka Folawiyo, partners hit commercial oil discovery in Lagos
By Sulaimon Salau

A CONSORTIUM of companies, operating the Aje oil field in Oil Mining Licence 113 (OML113) offshore Lagos, has confirmed the field for commercial discovery.

A statement issued by Providence Resources Oil and Gas Exploration and Production Company, said "we are pleased to confirm that the Aje Field, in OML113, offshore Nigeria has been deemed a Commercial Discovery by the Operating Committee."

Accordingly, the partners in the Aje Field have authorised Chevron, as Technical advisor to the operator, to prepare a development plan for the field.

Providence holds a five per cent net revenue interest in the Aje Field with the other partners in the project being Yinka Folawiyo Petroleum Company Limited (operator), Chevron Nigeria Deepwater H Limited (Technical adviser to the operator), Vitol Exploration Nigeria Limited and Energy Equity Resources Aje Limited.

The statement quoted the Chief Executive of Providence, Tony O'Reilly, as saying, "We are delighted with the recent resolution of the partners to formally confirm the commerciality of the Aje Field and to authorise Chevron to prepare a development plan. These key decisions confirm our long held view with regard to the value of our interest. Whilst this project is material for Providence, our interest in OML 113 offshore Nigeria lies outside of our core focus areas and thus Providence continues to consider all options in relation to this asset."

The Aje Field is situated in Oil Mining Lease 113 (OML 113) in water depths of up to c. 3,000 feet and is 15 miles offshore Nigeria, being some 40 miles off Lagos coast. Aje-4 is the fourth well to be drilled on the Aje Field, all of which have intersected hydrocarbons.

The discovery well, Aje-1, which was drilled in 1996 encountered oil and gas in reservoirs of Cretaceous Turonian age, and flowed at an aggregate rate of 42 MMSCFD and 2,262 BOPD over three zones. An appraisal well, Aje-2, which was drilled in 1997 also encountered oil and gas in the Turonian and flowed 3,866 BOPD from an additional zone in the Cenomanian which had not been tested in the Aje-1 well.

Meanwhile, Aje-3 well, which was drilled in 2005 on the southwest flank of the field encountered significant gas shows whilst drilling the Turonian reservoir section and this together with wire-line log data, suggest that whilst reservoir quality is not optimum, this section is gas bearing.

According to the company, Aje-4 well is interpreted to have encountered the main Turonian reservoir c. 30 feet up-dip from the Aje-2 well and the petrophysical logs confirm a gross Turonian hydrocarbon column of c. 335 feet. Down-hole pressure and sample data confirm that the Turonian column comprises gas condensate overlying a c. 30 foot oil rim and that the total column is thought to share a common contact with the Aje-1 & 2 wells.

The results of the Aje-4 well now suggest that the Aje Field may comprise a large low relief and laterally extensive reservoir system. The underlying Upper Cenomanian oil pay zone contained a c. 65 foot gross oil column and the data again suggest that this unit is in communication with the oil payzone, which was tested in the Aje-2 well. A further new Lower Cenomanian oil pay zone was also confirmed with a gross column of c.60 ft.

debosky:
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What does impact will this have on Lagos, the South West and Nigeria as a whole?

debosky:

What does impact will this have on Lagos, the South West and Nigeria as a whole?

Ibime:

This is a great development! I hope they find oil under mainland Lagos itself so they can bulldoze that slum and clear out the disease infested population back to their states of origin.

I also hope this development will make Lagosians see cause to fight for indigenous rights to land and minerals which have been denied to their brothers in the SS and SE. We can form the Movement for the Emancipation of Southern Nigeria! 

I also hope this thread will not provide a justifiable reason for Nigeria1/BecomeRich to pepper us with aerial photos. 

must_a_far:

but if exploration starts does lagos state become being referred to as niger-delta or part of the area included in the NDDC because it seems the term niger-delta is being used to refer to the oil producing states.

I guess that name would have to change to something like Oil Producing Areas Development Commission (OPADEC)

Ol boy! why would you rather trample upon money rather than bring it out and spend it for the good of all.[/quote]


I wonder if the money been churned out from the present delta is for the good of all

desgiezd:

I guess that name would have to change to something like Oil Producing Areas Development Commission (OPADEC)

Ol boy! why would you rather trample upon money rather than bring it out and spend it for the good of all.

Finally, BecomeRich has a financial source that will finance his dream. It'll only be a matter of minutes before he spams this thread.

honeric01:

Now Fashola should give 1 million naira to every born lagosian as a start

Lagosboy:

I second the motion but would narrow it down to those whose parents were born in lagos

honeric01:

Now Fashola should give 1 million naira to every born lagosian as a start

I am more worried about the potential unrest and maybe bloodshed, this discovery might cause!

Why cant we discover something else, so our over-reliance on oil can be sorted out?

MrCrackles:

I am more worried about the potential unrest and maybe bloodshed, this discovery might cause!

Why cant we discover something else, so our over-reliance on oil can be sorted out?

JosBoy4Lif:

I thought in Nigeria it is the Federal government that controls oil.

debosky:


The Fed does, but if more zones have oil, the center becomes less attractive because you don't need the ND's oil money to survive.