Sirius swaps rig for Ororo field campaign, begins mobilization
- Exploration & Production
China’s offshore drilling contractor COSL has begun mobilization of the COSL Force jack-up rig to drill two wells on the Ororo field off Nigeria.
Sirius, which recently transitioned into an operating company, gained a 40% economic interest in the Ororo field through a joint operating agreement from August 2017. Its partners are Owena Oil & Gas (100% state owned entity) and Guarantee Petroleum, who own 27% and 33%, respectively.
The Ororo field, discovered in 1986, is located within OML 95 in shallow waters offshore Ondo State. The field lies in water depths ranging between 23ft and 27 ft.
Sirius said on Monday that COSL received preliminary location approval from the Marine Warranty Surveyor for the Ororo-2 and Ororo-3 wells.
Furthermore, COSL has optimized the drilling campaign for Sirius by electing to deploy the COSL Force jack-up rig instead of the COSL Power jack-up, Sirius said.
To remind, Sirius in November 2016 signed an innovative rig deal with China’s COSL Drilling for the provision of a jack-up drilling rig to be used for the Ororo field well campaign. It was agreed for COSL to take payment for the charter at a later date. In May 2017, COSL confirmed and identified the COSL Power as the jack-up rig which will be utilized for Ororo drilling campaign.
Sirius explained on Monday that the COSL Force is a “hot rig”, which means it is tooled-up and ready to operate, currently located offshore UAE and is therefore ready to be mobilized to Nigeria shortly.
Drilling in April
Once the rig is on station, it is anticipated, weather conditions permitting, that drilling of the Ororo-2 well will begin in April 2018 and that drilling will be in a location close to the Ororo-1 well, drilled by Chevron in 1986.
According to Sirius, the Ororo-2 well is planned to penetrate all of the D sands, with the top three sands (D1, D2, and D3) being sampled and pressure tested.
The objectives of the tests are to determine gas-oil contacts, the pressure regimes, fluid compositions, and in-situ gas-oil ratios ahead of an extended well test. The well will then be drilled down to the deeper G sands where it is expected to be completed for production.
According to the Ororo CPR produced by Rockflow Resources, it is estimated that the Ororo-2 well will initially produce approximately 2,700 bopd of light oil and 6 mmcfd of gas.
Rockflow estimates that the Ororo asset has a mid case net present value to Sirius of $96 million, based on a $65 per barrel flat real oil price for the life of the field.
Also, Sirius concluded amended terms for the COSL Force, extending the initial program to cover both the Ororo 2 and Ororo 3 drill programs for a lump sum of $9 million on the assumption that the duration of the work will not exceed 90 days from the spud of the first well in the program and assumes a 45 day work duration per well. If the duration of the work exceeds that period, daily rates will apply.
In accordance with the amended agreement, Sirius has made an initial deposit payment of $1.5 million to COSL.
Bobo Kuti, Sirius CEO, said: “This is a milestone for Sirius as we embark with our operational partners on the first of our drilling programs. We are delighted to be working alongside COSL as our rig partners and thank them for the excellent work they have done on mobilization, and we look forward to the commencement of the well campaign operations on Ororo-2 in the coming months.”