ADM, Eunisell considering Barracuda field development options

Oil and gas investment company ADM Energy has signed a deal with Eunissel to explore collaboration to develop the Barracuda oil field in OML 141 located in shallow waters off Nigeria.

ADM Energy in March decided to invest in the development of the Barracuda oil field. The investment was made via an acquisition of a 51 per cent interest in KONH UK Limited, which holds a 70 per cent indirect interest in the risk-sharing agreement (RSA) relating to the Barracuda area.

Per the agreement with Eunissel, the two companies will explore collaboration opportunities to carry out the development of Barracuda and associated work-related activity in Nigeria.

ADM said on Monday that it was the intention of both parties, together with the risk-sharing consortium in respect of the Barracuda field, that a formal agreement would be entered into before any work starts.

“Eunisell has decades of experience in engineering, production, operations and enhanced production techniques within Nigeria and the parties intend to work together to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda field in which ADM recently invested”, ADM stated.

According to the company, activities under the intended scope of work may include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing, and laboratory services.

Following discussions, Eunisell may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract.

Osamede Okhomina, CEO of ADM Energy, said: “The collaboration agreement with Eunisell, one of Nigeria’s leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold.

“With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs.

“We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141“.

As for the Barracuda field, it sits in the northwest part of oil mining licence 141, an area covering 1,295 square kilometres in shallow waters of the Niger Delta.

Four existing wells are already drilled – three wells by Tenneco in 1967 and one well by CNOOC in 2007. The plan is for a fifth well to be drilled to carry out a flow test in the fourth quarter of 2021 which, if successful, will be brought onstream. The intention is that ADM’s financing partner Dubai Bridge Investments may fund certain development costs.

Based on existing Barracuda data and field analogues, ADM estimates recoverable oil resources of 73 million barrels from the D-1B reservoir with several other potential reservoir leads to be further appraised after initial production. ADM considers that there may be an opportunity to further increase field productivity from further drilling in the following years.