In 2012, the year the Company was officially launched, FIRST E&P acquired a 10% equity interest in ND Western Limited (NDW) which has 45% interest in OML 34, operated by NPDC. The acquisition in NDW provided FIRST E&P with immediate equity oil and gas production.
OML 34 is an onshore license block with four defined fields (Utorogu, Ughelli East, Ughelli West and Warri River fields) and a large exploration scope in multiple prospects and leads across the block. The asset is strategic to Nigeria’s gas to power plan and currently delivers gas through Nigerian Gas Company to various power distribution companies and independent power plants. The block has material upside potential and is capable of realising production levels of 60,000 bbl/d oil and 600 mmscf/d gas based on the existing 2P reserves. The estimated HCIIP on the asset is 1,538MMstb of oil and 8.057Tcf of gas.
Dangote Industries Limited in partnership with FIRST E&P is embarking on an East West Offshore Gas Gathering Pipeline System (EWOGGS) which will transform Nigeria’s energy landscape. It is the single largest gas infrastructure investment in Nigeria’s history for the benefit of domestic gas demand.
It connects the gas resources in the East with the domestic gas demand in the West through a 3Bcf/d open-access offshore gas pipeline system. The EWOGGS gas pipeline system will have provisions for seven offshore gas injection connection points and two offshore gas discharge connection points.
This infrastructure will allow stranded assets along its trajectory to be developed as a gas monetisation route becomes available. The project is currently in the development phase and is scheduled to be completed by 2018.
OMLs 71 & 72
FIRST E&P in conjunction with Dangote Exploration Assets Limited and Dansa Energy Resources Limited (via a joint venture – West African Exploration and Production Company Limited (WAEP)) acquired a 45% participating interest in OML 71 and OML 72 from Shell Petroleum and Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited (the “SPDC JV”). These blocks are located south of the Bonny Island. There are 7 discovered fields in OML 72 namely - Kalaekule, KD, Koronama, Kugbe, KL, KQ, Kappa, while OML 71 has 2 main fields called KI and KI south.
Of all the fields, only Kalaekule has been developed and produced. The field was in production between 1986 and 2002 with average production of c.22,000 bbl/d and was shut-in by the SPDC JV in 2002 to allow for a planned refurbishment of the field facilities.
The estimated HCIIP volume in OML-72 is 1,149MMstb of oil and 2.447Tcf of Gas whilst OML 71 is estimated to have 158MMstb of oil and 1.4Tcf of gas thus presenting an opportunity for significant oil and gas development.
|Block||Operator||FIRST E&P||Major Fields|
|OML 34||NPDC||4.5%||Utorogu, Ughelli East, Ughelli West and Warri River|
|OML 71||WAEP**||6.75%***||KI and KI South|
|OML 72||WAEP**||6.75%***||Kalaekule, KD, Koronama, Kugbe, KL, KQ, Kappa|
|OML 83||FIRST E&P||40%||Anyala|
|OML 85||FIRST E&P||40%||Madu|
OMLs 83 & 85
In 2015, FIRST E&P completed the acquisition of Chevron’s 40% participating interest in OML 83 and OML 85 and obtained operatorship of the assets. The remaining 60% participating interest in the asset is held by NNPC. Both licenses are located in the shallow offshore with water depths of 35 to 55m. Their main fields are Anyala and Madu respectively.
The Anyala field, located in OML 83 with estimated HCIIP of 218MMstb of oil and 175BScf of gas, is the main development opportunity whilst the Madu field in OML 85 has HCIIP of 89MMstb of oil and 739BScf of gas. The Field Development Plans for these assets have been duly approved by the Department of Petroleum Resources and FIRST E&P is currently working with NAPIMS/NNPC to ensure the successful development within the scheduled timelines.
*4.5%: indirect interest in OML 34 through a 10% equity interest in ND Western Limited (45% interest holder in the Block), NPDC has a 55% participating interest in the Block; **West African Exploration and Production Company Limited (WAEP) acquired a 45% participating interest in the Blocks. FIRST E&P is the technical lead in WAEP; ***6.75%: indirect interest through a 15% equity interest in WAEP.
Our Asset acquisition strategy is based on securing a balanced portfolio of assets and opportunities that enables the Company achieve its equity production and reserves aspirations in the short, medium and long term. In this regard, we have successfully secured certain interests in five Oil Mining Licenses, four of which are located in the shallow offshore region of the Niger Delta Basin.
In addition, FIRST E&P holds an equity interest in an offshore gas gathering system - East West Offshore Gas Gathering System (“EWOGGS”), Nigeria’s largest gas infrastructure project being developed in partnership with Dangote Industries Limited.
On the basis of these acquisitions, we have established a strong foothold Shallow Offshore Niger Delta and intend to strategically consolidate on these wins by ensuring our asset development plans, reserves addition strategy and portfolio growth plans are centered on hubs defined by the locations of our assets and the trajectory of the EWOGGS pipeline.
Our portfolio consists of producing, near term, development and appraisal assets. We are also actively building up a “blue sky” exploration portfolio which will be of interest to investors interested in the upside value of the upstream business.
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