ADM, Eunisell assessing Barracuda production options

April 13, 2021
ADM Energy has entered a non-binding collaboration agreement with Nigerian company Eunisell.

Offshore staff

LONDON – ADM Energy has entered a non-binding collaboration agreement with Nigerian company Eunisell.

They will jointly explore opportunities to develop the Barracuda oil field in OML 141 offshore Nigeria, with a formal agreement to follow before work begins.

According to ADX, Eunisell has decades of experience in engineering, production, operations and applying enhanced production techniques in Nigeria. The two parties aim to use their combined experience to accelerate production of oil and gas assets, initially focusing on Barracuda.

Activities could include an early production facility supply, procurement, construction and commissioning of production facilities, extended well testing, and laboratory services. 

Eunisell may consider providing vendor financing to achieve the agreed workscope, pending conditions to be determined at the point of contract award.

ADM recently announced it had conditionally agreed to invest in the development of Barracuda, located in swamp/shallow waters, via the acquisition of a 51% interest in K.O.N.H. UK for up to $1.3 million.

KONH has an indirect interest in a risk sharing agreement (RSA) for the field. The RSA is a service contract commonly used in the Nigerian oil and gas industry, which involves cash compensation out of profits generated from development of the field.

A Competent Persons Report prepared in 2016 by Ryder Scott indicated P50 resources of 1.3 Bbbl of oil in place from two sand reservoir intervals. There is a similar high-quality reservoir in the nearby Nembe Creek field (over 1 Bbbl of oil in place).

Four wells have been drilled on Barracuda and ADM will seek to drill a fifth in 4Q 2021 with Dubai Bridge Investments potentially funding certain development costs.

ADM believes 4,000 b/d of production is feasible in H2 2021 and that further drilling (two more wells) could raise productivity to 23,000 b/d by 2026. A 12-km (7.5-mi) pipeline to the Brass Export Terminal could cut opex to $12/bbl.

04/13/2021

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