12 January 2013

Nigeria: NPDC, 2 Firms Sign Deal On Oyo Well

Lagos — Allied Energy Plc has signed a Deed of Assignment with Transocean Limited and the Nigerian Petroleum Development Company (NPDC) for the Sedneth 701 semi-submersible drilling rig to carry out the drilling of the Oyo No 7 well.

Oyo N 7 is located on OML 120. Allied Energy is also the operator of and OML 121.

The Sedneth 701, currently under contract with the NPDC and operated by Transocean, would be assigned to Allied to drill Oyo well N7 between April and August of 2013. Transocean will continue to operate the rig during the assignment period.

"We are very pleased that Allied Energy has executed an agreement for Transocean's Sedneth 701 drilling rig," said senior VP of Exploration and Production, Segun Omidele.

"This rig has the necessary specifications to achieve Oyo #7 well's dual objectives of increasing production from the Pliocene and testing the resource potential in the Miocene, and it also provides necessary certainty for our 2013 drilling operations."

Meanwhile, Elcrest Exploration and Production Nigeria, the JV company established to work on OML 40 by Eland Oil & Gas and its Nigerian partner Starcrest Nigeria Energy, said the immediate objective is to re-commission OML 40 production facilities with a target gross production of 2,500 bpd before the end of Q1.

The JV will then increase production through further development, appraisal, and exploration to reach a target gross production of 50,000 bpd within four years. Elcrest, along with the state oil firm, NPDC are planning on the full development of OML 40 after restoring production through the existing production facilities and will export the oil via the Shell operated export terminal at Forcados.

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