The FPSO will be used for the development of the Bilabri Field on OML 122 offshore Nigeria, with a Best Estimate for the recoverable reserves, as previously announced, of 45 million barrels of oil and 730 BCF of gas. Production is planned to commence in the third quarter of 2007 at an estimated 30,000 Bopd. The initial term of the FPSO lease is five years with an option to extend for up to an additional five years.
Equator and Peak are currently operating the Bulford Dolphin semisub which is due to commence drilling a development well on the Bilabri field in July following the recent completed Owanare discovery well, also on OML 122.
OML 122 is located 25-60 kilometers offshore in water depths of 40-300 meters and covers an area of 1,295 square kilometers on the Western Niger Delta, east of Shell's giant Bonga Field (estimated 1.4 billion barrels) and South West of Shell's EA Field.
Sergio Ottochian, Senior Petroleum Consultant of independent consultants, Horizon Energy Partners BV, has fully approved the publication of all volumetric estimates as mentioned in this announcement.
Wade Cherwayko, President and CEO of Equator, comments:
"Today's letter of intent with BW Offshore keeps us on target to realize first oil production by mid 2007 and generate revenues next year. Peak and Equator are delighted to be working with a company of the stature of BW Offshore and look forward to working with our partners in developing a truly world class oil and gas development offshore Nigeria".
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