FIRST E&P Managing Director and CEO Ademola Adeyemi-Bero (right) pictured at the signing ceremony (Image source: FIRST E&P)

Nigerian National Petroleum Corporation (NNPC) Group Managing Director Dr. Maikanti Baru, FIRST E&P Managing Director and CEO Ademola Adeyemi-Bero, and Schlumberger Executive Vice President Patrick Schorn, signed today a tripartite agreement for development of the Anyala and Madu fields under Oil Mining Leases (OMLs) 83 and 85, offshore Nigeria.

Under the agreement, Schlumberger will contribute the required services in kind and capital for the project development until first oil. The joint project team will leverage the technical expertise of Schlumberger and the extensive local knowledge of the partners.

OMLs 83 and 85 are in shallow waters 40 km offshore in the Niger Delta. The Anyala and Madu fields are discoveries with a combined STOIIP of more than 450 million bbl and GIIP of more than 800 Bscf. NNPC holds a 60% interest in the licenses while FIRST E&P holds the remaining 40% and is the operator of the assets.

The project will be developed with an existing FPSO and, is designed to add 50,000 bbls of oil per day and 120 MMscf of gas per day. Project FID is expected to be made in the fourth quarter of 2017, with first oil production in 2019. The investment in the project, phased over several years, is estimated at $700 million.

Group Managing Director of the NNPC, Dr. Maikanti Baru, said this innovative approach to funding JV operations is in response to the challenging economic environment, was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetization of the nation’s enormous gas resources.

In addition, Ademola Adeyemi-Bero remarked that “the partnership between the NNPC-FIRST E&P JV and Schlumberger introduces a new asset development model, leveraging its local knowledge and market position as an indigenous operating company, with Schlumberger’s financing and broad technical capabilities. FIRST E&P will strengthen its project delivery abilities, and this model offers the Nigeria upstream E&P industry a credible alternative funding & technical partnership model for growing production and adding reserves.”

Patrick Schorn commented, “Schlumberger is very pleased to partner with NNPC and FIRST E&P where we have the opportunity to leverage our reservoir knowledge, oilfield services and project management expertise to lower development costs and maximize value for the partners.”