Erin Spuds Latest Oyo Well off Nigeria
Monday 14 August 2017
US independent Erin Energy has spud its latest development well on the Oyo field off Nigeria where it has recently been in dispute with Malaysian offshore contractor Bumi Armada.
The Houston-based player has spun the bit on the Oyo-9 well with the Pacific Drilling-owned drillship Pacific Bora, it said on Monday.
The well is expected to take 62 days to drill and complete and is seen being tied back to the Armada Perdana floating production, storage and offloading unit in the fourth quarter.
Erin’s contract for the drillship includes an option for two more wells, with the dayrate at $195,000.
Kuala Lumpur-listed Bumi suspended the bareboat charter of the Armada Perdana in late June, also suspending the operations and maintenance (O&M) contract related to the unit.
It said last week, however, that it has agreed with Erin to allow the flow of produced oil into the FPSO’s cargo tanks.
“The company continues to engage with (Erin) in order to reach an amicable solution for the outstanding payments,” it continued.
The Armada Perdana produces from the Oyo field in OML 120, which is located 75 kilometres from shore in water depths of between 200 and 500 metres.
The floater has production capacity of 40,000 barrels per day of oil and storage capacity of 1.1 million barrels. Erin said on Monday that the Oyo-9 well is expected to add between 6000 and 7000 bpd of output. The field also has gas treatment and re-injection facilities, with gas re-injected into the reservoir for enhanced recovery.
The Oyo field began producing in 2009. Erin has a 100% interest in OML 120 and also in neighbouring OML 121.