Regional Overview: Nigeria
Nigeria’s potential
Licences
| Nigeria | Working Interest | Local Partner | Work Programme |
|---|---|---|---|
| Okoro Setu | 50%* | Amni | Production |
| Ofa | 32.5% | IEL | Under review |
| OPL 310 | 70% | Optimum | Exploration |
| OPL 907 | 41%** | GEC | Exploration |
| OPL 917 | 42%** | GEC | Exploration |
| Ebok | 50%* | Oriental | Development |
| Okwok | 56%* | Oriental | Appraisal/Development |
| OML 115 | 45%*** | Oriental | Exploration/Appraisal |
* Share of Profit Oil after cost recovery.
** AGER working interest; AGER is owned 50% by Afren,
50% by Global Energy Company (GEC).
*** Assumed effective average working interest.
Afren in Nigeria
We have nine assets within Nigeria, spanning the full cycle E&P value chain right through from exploration, appraisal and development to production.
Afren achieved first oil production in Nigeria through development of the Okoro field, which was successfully commissioned in June 2008. In a demonstration of the Company’s technical and financial capabilities, the two-year lead time from farm-in to first oil represents one of the fastest developments of an oil field in Nigeria by an independent to date. The field today continues to outperform pre-development expectations, there being a firm focus now on maximising the economic recovery factor at the field through infill drilling, prudent reservoir management and efficient operational delivery.
Our near-term organic growth in Nigeria will be driven primarily by the Ebok/Okwok/OML 115 complex, located offshore south east Nigeria. We farmed into the Ebok field in early 2008, and acquired stakes in Okwok and OML 115 in August 2009 and January 2010 respectively. We have achieved a 100% appraisal drilling success rate in the area to date, and NSAI has increased its total 2P recoverable reserve estimates at Ebok to 107.5 mmbbls. We expect first production from Ebok in October 2010.
At each asset we have forged vital partnerships with indigenous companies and are over 90% staffed locally in our Nigerian office. We place community relations at the heart of what
we do in Nigeria, where we have a full team dedicated to and constantly engaging with our local host communities. We are committed to delivering sustainable benefits to people in the local communities that have a long-lasting and positive effect.
Reserves
Netherland Sewell & Associates Inc. has independently certified net 2P reserves and contingent resources in Nigeria of 82 mmbbls at 31 December 2009.
2009 results highlights
| Total Production | Total Reserves* and Resources | Sales Revenue | 2009 Investment |
|---|---|---|---|
| 18,800 bopd |
734 mmboe |
US$292.1m | US$136.0m |
* Net working interest; includes management estimates for Okwok and
OPL 907/917 not yet evaluated by NSAI.
Nigeria holds the largest oil and natural gas reserves base in Sub-Saharan Africa with an estimated 36 billion barrels of proved oil and 184 tcf of proved gas.
Source: BP Statistical Review of World Energy 2009.
Adebayo Ayorinde
Technical Director, Afren Nigeria
Taiwo Olushina
Group Drilling Manager, Afren Nigeria
Afren’s Nigerian Office
“At each asset we have forged vital partnerships with indigenous companies and are over 90% staffed locally in our Nigerian office.”
