Okoro Setu
The Flagship Okoro Setu development
| NIGERIA | OKORO |
|---|---|
| Working interest |
50%* |
| Local partner |
Amni |
| Gross production | 18,800 bopd |
| Gross 2P certified reserves (31/12/09) | 24.8 mmbbls** |
| 2009 Net turnover | US$292.1 million |
| 2010 Work programme | Production/ Infill Drilling |
* 50% effective working interest post cost recovery; 95% effective
working interest pre cost recovery.
** Source: NSAI.
Strong production performance
By the end of 2009, the Okoro field had produced 8.1 mmbbls of oil. Production averaged 18,800 bopd throughout 2009 with minimal water production. This result was above pre start-up expectations and is due to:
- water breakthrough from the existing production wells occurring much later than predicted;
- better reservoir quality than incorporated into the original field simulation model; and
- good aquifer support, evidenced by production history to date.
Improved production outlook and infill targets identified
Using this new information, the field reservoir model has been updated for both producing intervals, as reflected in the NSAI reserves upgrade to 24.8 mmbbls. Production is now expected to decline at a slower rate, and therefore the ultimately recoverable reserves have increased. The updated reservoir model has also allowed us to identify at least two infill drilling locations.
Operational efficiency
The off-take and export of the crude oil produced at Okoro continues to run smoothly and without interruption. This has been helped by a change in our export process implemented in November 2009. We are using a shuttle tanker to transport the processed Okoro crude to the Amni operated Ima terminal. The increased storage capacity at the Ima terminal, of over 1 mmbbls, will allow the benefit of increased parcel sizes and improved shipping and sales economics.
To date, production uptime has been at 99.6% with no incidents or accidents recorded in 2009. There was a brief shutdown in the third quarter when a high level of water (above the allowed 0.5%) was detected in the storage tanks. This impacted the timing of one lifting as a result of having to obtain a temporary permit from the government to offload that cargo. An effective chemical programme to treat the oil-water emulsion was immediately put in place and there were no more delays.
We successfully lowered field operating costs in 2009 by 13% to US$73.4 million. The primary reduction came from savings in the cost of supply vessels, where we renegotiated lower rates early in the year. Further savings will be made through cost sharing initiatives with the Ima field and an additional lowering of supply vessel costs late in 2009.
2010 work programme
In 2010, the Okoro partners plan to drill two infill wells targeting the identified zones. We expect these wells to restore gross field production rates to more than 21,000 bopd.
We also plan to look at the feasibility of producing oil from the Setu satellite structure, as part of the overall Okoro field production programme.
