The production mission is currently being addressed by acquisition of Nigerian near production assets acquired in Joint Venture with EER a Nigerian Oil and Investment and Consulting company.
Nigeria, officially the Federal Republic of Nigeria, is a federal constitutional republic comprising thirty-six states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. It's coast in the south lies on the Gulf of Guinea on the Atlantic Ocean. The three largest and most influential ethnic groups in Nigeria are the Hausa, Igbo and Yoruba. In terms of religion Nigeria is roughly split half and half between Muslims and Christians with a very small minority who practice traditional religion.
The people of Nigeria have an extensive history. Archaeological evidence shows that human habitation of the area dates back to at least 9000 BC. The area around the Benue and Cross River is thought to be the original homeland of the Bantu migrants who spread across most of central and southern Africa in waves between the 1st millennium BC and the 2nd millennium.
The name Nigeria was taken from the Niger River running through the country. This name was coined by Flora Shaw, the future wife of Baron Lugard, a British colonial administrator, in the late 19th century.
Nigeria is the most populous country in Africa, the eighth most populous country in the world, and the most populous country in the world in which the majority of the population is black. It is listed among the "Next Eleven" economies, and is a member of the Commonwealth of Nations. The economy of Nigeria is one of the fastest growing in the world, with the International Monetary Fund projecting a growth of 9% in 2008 and 8.3% in 2009. International Monetary Fund (IMF) has also announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9% in 2009 to 7.4% this year. It is the third largest economy in Africa, it is also the largest exporter of oil in Africa and is a regional power that is also the hegemon in West Africa.
SacOil is currently in the process of concluding and acquiring interests in two assets in Nigeria, which are OPL 233 and OPL 281 that will result in SacOil holding a 20% interest in both blocks. Both OPL’s have potential for rapid monetization and are in the vicinity of abundant infrastructure.
- Situated in prolific area of Niger Delta
- 100 MMboe gross contingent resources
- All partners to carry cost proportionately
OPL 281 is an onshore block situated in one of Nigeria’s oil rich states in the community of the Obotebe Kingdom known simply as Delta. Delta is further sub-divided into three senatorial districts – Delta North, Delta South and Delta Central. OPL 281 is located in the Delta South area, approximately 20 kilometres from Warri, the economic nerve centre of the region. In close proximity to OPL 281 is the Forcados Crude Export Terminal and the Odidi Platform (the regional gas condensate processing plant) is located approximately 25 kilometres away.
The block was awarded to Transcorp in 2006 as part of a Mini Bid Round.
OPL 281 is an onshore block covering an area of 138 square kilometres and is located in the western delta region of Nigeria, 25 kilometres away from the Forcados Crude Export Terminal. Between 1767 and 1970 two discovery wells were drilled. The Obote-I discovered hydrocarbons at four levels between 8,720 – 12,350 feet; and Ekoro-I encountered eight hydrocarbon sands between 8,260 – 10,761 feet.
Phase 1 exploration commitments include the reprocessing of existing 3D seismic data and the drilling of one exploration with a financial commitment of $30 million. Phase 2 consists of one well plus the acquisition of 3D seismic data over the remaining part of the block without 3D coverage. At completion of the acquisition, SacOil will hold 20%, EER 20% and Transcorp 60% equity in the block.
- Completed interpretation of existing seismic and well data
- Evidence of the existence of amplitude anomalies on seismic data
- Completed modelling and planning of the 3D seismic reprocessing
- Evidence of potential deeper prospects and targets on seismic data
- Completed the feasibility study of an EWT
- Site survey successfully completed
- Additional data sourced to assist in identification
of drilling prospects
- Approval of work programme and budget by the
OPL 233 is an offshore oil block that is located in the core shallow Marine area of the prolific Niger Delta region. It encompasses an area of approximately 126 square kilometres and is located in water depths ranging from 3 to 10 metres. Although much of the block remains unevaluated, interpretations and assessments completed to date have mapped additional leads and prospects using the existing 2D seismic data and estimate an exploration upside, with prospective resources, which can be further evaluated with a 3D Ocean Bottom Cable (OBC) seismic survey. Due to the block’s location in the core area of the prolific Niger delta play, close neighbours are oil majors such as Shell, Chevron and AGIP.
OPL 233 was awarded to NIGDEL United Oil Company Limited (“NIGDEL”) in 2006 and the production sharing agreement was executed by NIGDEL and Nigerian National Petroleum Corporation (“NNPC”) in May 2007.
One well was drilled in 1986 on OPL 233, which encountered five pay horizons containing oil and gas. TRACS review of the limited well data available confirms the original interpretation of the respective payzones and the hydro-carbon types encountered.
The Phase 1 work program commitments include,the acquisition of 100km² of 3D and the drilling of one exploration well plus. Phase 2 consists of the drilling of two wells. At completion of the acquisition, SacOil will hold 20%, EER 20% and Nigdel 60% equity in the block.
- Completed the interpretation of existing seismic and well data
- Completed the modelling and planning of the 3D OBC seismic survey
- SacOil with its joint venture partners are in the process of finalising 3D OBC contractor assessments and engagements
- Completed the feasibility study of an extended well test