Barracuda Field, Nigeria
The Barracuda Field sits in the northwest part of OML 141, an Oil Mining Licence area covering 1,295km2 in the swamp/shallow waters of the Niger Delta in Nigeria.
Four existing wells drilled in 1967 (three wells by Tenneco) and 2007 (one well by CNOOC) penetrated oil-bearing high-quality C3 and D-1B sands typical of the stacked delta top and prodelta reservoirs in faulted listric settings common in this area. The plan is for a fifth well to be drilled (Barracuda-5) in order to carry out a flow test in Q4 2021 which, if successful, will be brought onstream. The intention is that ADM’s financing partner Dubai Bridge Investments may fund certain development costs (terms and conditions are still to be finalised). 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.
OML 141 asset map
The equity owners of OML 141 are Nigerian indigenous companies Emerald Energy Resources (54%), Amni Oil and Gas (44%) and Bluewater Oil and Gas Investments (2%).
Acquisition of controlling interest in Risk Sharing Agreement for the Barracuda Field
ADM is acquiring a 51% stake in Karra Oil Noble Hill UK Limited (“KONH”), expected to complete in Q2 2021, and through that a controlling interest in a Risk Sharing Agreement (“RSA”) entered into for the development of the Barracuda Field and of which KONH holds a 70% interest. The RSA Consortium intends to provide or procure funding for all upcoming capital expenditure (“Capex”) subject to the joint operators’ approval to develop the Field, in return for 235% of approved capex to be recovered plus a 15% Net Profit Interest (“NPI”). Post return of invested capital to the RSA Consortium, the RSA Consortium remains entitled to the NPI throughout the life of the Field.The RSA also grants the holders an option to acquire a participating interest in the OML 141 Licence.
OML 141 geology
- Typical Niger Delta upper/lower shore-face and channels
- Good regional correlations across major flooding surfaces
- Hydrocarbon charge model supports oil
- Low resistivity pay dominates this deposition belt because of the presence of minerals such as feldspar/mica, pyrite, glauconite and slit
- Average rock properties within this region are high porosity (>30%) and permeability (>2D)
- Average pay thickness > 150 ft and saturations range 40-60% based on resistivity logs