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NIGERIA - The Agbami Project.

On Feb. 25, 2003, the NNPC/Chevron JV announced plans to invest about $4 bn during the next three years on three oil and gas projects: completion of the Escravos gas-gathering programme, the EGTL) plant, and development of the Agbami deep-water oilfield on OPL 216 block based on a PSC. Delayed since late 2001 (when the 30-year PSC was signed) because NNPC wanted to take the 60% equity from the local oil firm Famfa, the Agbami project was finally given the go ahead in July 2003. Now the partnership structure for Agbami is as follows: ChevronTexaco as operator with 32%, NNPC with 50%, Famfa with 10% and Petrobras with 8%.

Because of the delay, the $2.5 bn Agbami project's first oil will be on stream in 2007. Peak oil production will be 250,000 b/d. The field has about 1 bn barrels of recoverable oil. Its offshore prospecting licence (OPL) is being converted into an offshore mining licence (OML) for development spending to proceed. Agbami covers 45,000 acres and is located about 70 miles off Nigeria's coast. The field will have a large FPSO vessel.

Approximately one-third of Agbami lies in the adjacent Block OPL 217, where Statoil (54%) is the operator and ChevronTexaco (46%) is its partner. A unitisation formula for the whole of the Abgami reservoir is being worked out to take into account the interests of the two OPL 217 partners.

Texaco Nigeria Outer Shelf (part of ChevronTexaco) has a stake in Statoil's adjacent OPL 218, where the Norwegian operator has found the big Nnwa gas field. This and Shell's Doro gas field will be developed jointly for a floating LNG/GTL export plant (see above).

In early 2001 Chevron won OPL 250 deep-water block, the most sought-after tract close to offshore acreage in which billions of barrels of oil have been found. Abuja gave the 10% share of Ocean Energy of Houston half to Shell and half to Petrobras. So the JV, which has a PSC with NNPC, now is held 50% by Chevron (operator), 35% by Shell and 15% by Petrobras. (Petrobras has considerable expertise in deep-water E&P gained from its Campos Basin operations in Brazil).
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Publication:APS Review Gas Market Trends
Date:Aug 11, 2003
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