Nigeria accord clears path for deepwater Zabazaba/Etan project
Eni says a recent agreement signed with Nigeria’s federal government opens the way for a fast-track development of the deepwater Zabazaba and Etan oil and gas fields.
Earlier this month, Eni CEO Claudio Descalzi discussed the company’s activities with Bola Ahmed Tinubu, President of the Federal Republic of Nigeria.
One of the main issues raised was the agreement concerning the conversion of Oil Prospecting Licence 245 (OPL 245), including the mutually satisfactory settlement of all associated claims and the ending of the international arbitration proceeding at the International Centre for Settlement of Investment Disputes (ICSID).
It enables the existing license to be converted into two development licenses, Petroleum Mining Leases (PML) 102 and 103, as well as two exploration licences, Petroleum Prospecting Leases (PPL) 2011 and 2012.
In all four cases, Nigerian Agip Exploration (NAE) is the operator, in partnership with Nigerian National Petroleum Co. (NNPC) and Shell Nigeria Exploration and Production Co. (SNEPCO).
Confirmation of PML 102 and PML 103 means development of the Zabazaba and Etan fields can go forward. Etan-Zabazaba, targeting about 500 MMbbl of reserves, will likely be developed through an FPSO with 150,000 bbl/d capacity to process oil.
In addition, the complex will process 200 MMcf/d of gas at peak, all exported through Nigeria LNG.
As for exploration licenses PPL 2011 and PPL 2012, both hold strong potential for a fast-tracked development ties into future Zabazaba-Etan facilities.
Recently, Eni expanded its deepwater Nigeria development interests further through acquiring an additional 15% stake in OML 118.