Wednesday, April 10, 2024
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HomeNewsTotalEnergies announces Ntokon oil and gas discovery offshore OML 102

TotalEnergies announces Ntokon oil and gas discovery offshore OML 102

  • It’s believed to be the largest shallow water discovery in Nigeria in a decade;
  • Estimated resources could be in excess of 300mm/boe

Commenting on the discovery, Gail Anderson, Director of Upstream Research at Wood Mackenzie, said “Ntokon is likely to be Nigeria’s biggest shallow water discovery in a decade. Despite the lack of exploration in recent times, this discovery shows that there is still plenty of running room in the shallow water Niger Delta.”

Located in shallow waters, 60 km off the southeast coast, the Ntokon-1AX discovery well encountered 38 meters of net oil pay and 15 meters of net gas pay, while its side-track Ntokon-1G1 encountered 73 meters of net oil pay, in well-developed and excellent quality reservoirs. Ntokon-1G1 tested successfully up to a maximum rate of about 5,000 barrels per day of 40° API oil.

Located 20 km northeast from the Ofon field facilities on OML102, Ntokon is planned to be developed through a tie-back to these existing facilities.

Anderson further said: “Assuming 320 mm/boe of reserves, a wellhead platform development of 60-70 metres water depth with up to 30 wells and a multi-phase pipeline to Ofon could achieve first oil in 2029. This would generate a healthy IRR of 24%, based on the current concession terms, with the understanding that the JV will not convert to the Petroleum Industry Act fiscal terms.”

Wood Mackenzie further estimates, based on analogous net pay of shallow water discoveries in the Tertiary Agbada formation of the Niger Delta, and above-average recovery from high quality reservoirs, that the field could hold resources in the range of 300 to 400 mm/boe.

Woods analysis in addition revealed that filling the Ofon facilities and the oil terminal would significantly cut emissions intensity, while a ready-made gas export route would make Ntokon a zero-flare development.

“This demonstrates the advantages of shorter-cycle tie-backs over more expensive stand-alone developments for both cost savings and lower emissions,” says Anderson. “However, there are challenges. Nigeria is not known for short lead-times, particularly where JV projects are concerned. Ntokon will provide a test in the face of stiff global competition to see if all interested parties could quickly progress lower-cost, lower-carbon projects and allow Nigeria to kick-start desperately-needed investment and recover its declining production”, he stated.

“The Ntokon discovery opens a promising outlook for a new tie-back development’’, says Nicolas Terraz, President, Exploration & Production at TotalEnergies. “After the start-up of production of the Ikike tie-back on OML99 in 2022, this new success in the area further demonstrates the potential of nearby exploration to create value within our low
cost, low emission strategy”.

TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. The company has in its payroll more than 100,000 employees who are also committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

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