Funding hitch causes part-suspension at Oyo offshore Nigeria

Erin Energy has obtained funding commitment for a potentially high-impact Miocene exploration well offshore Nigeria.

Offshore staff

HOUSTONErin Energy has obtained funding commitment for a potentially high-impact Miocene exploration well offshore Nigeria.

The site survey has been completed for the planned drilling location and the well should spud during the current quarter.

With funds in place, Erin has also exercised the first option well of the contract with the drilling contractor.

Drilling has finished on the offshoreOyo-9 well, with results indicating the presence of the target channel system and 85.3 ft (26 m) of net oil sand.

This is in line with predictions and confirms a western extension of the Oyo field. Engineering and manufacture of the subsea equipment for the development are in progress.

However, due partly to the delays in the release of the remaining funds and guarantor demands, Erin has opted to temporarily suspend the completion and hookup of the development program. ThePacific Bora drillship and all drilling services have therefore been demobilized.

Following the recent ruling by theSpecial Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburg on the maritime boundary dispute between Ghana and Côte d’Ivoire, Erin and its partners are working with Ghana’s government to progress the development activities in the offshore ESWT block, which contains three discovered fields with total in-place oil of 500 MMbbl.

They plan to acquire 3D seismic data over the block next spring to improve subsurface definition and optimization of drilling targets.

10/05/2017

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