Okono/Okpoho

Okono/Okpoho Oil and Gas Field Profile

Location

The Okono/Okpoho oil and gas field is located in the southeastern Niger Delta, offshore Nigeria, within the Oil Mining Lease (OML) 119 block. It is approximately 50-55 kilometers offshore and 55 kilometers away from Shell's Bonny Oil Terminal.

Coordinates

The exact coordinates of the field are 3.935°N, 7.3055°E.

Water Depth

The field operates in shallow water with depths ranging from 65 to 100 meters (or approximately 328 feet).

Discovery and Development

• The Okono field was discovered in 1983, while the Okpoho field was discovered in 1978 by the Nigerian Petroleum Development Company (NPDC).
• Despite the discoveries, the fields' development did not commence until 2001 when Agip Energy and Natural Resources (AENR) signed a modified service contract with NPDC.

Operation

• The field is currently operated by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Production

• Oil production from the Okono field is facilitated through subsea wells tied back to the Mystras Floating Production, Storage, and Offloading (FPSO) unit. The Okpoho field produces oil via a platform linked to the FPSO by a pipeline.
• The FPSO Mystras was purchased by the partners in 2008, and there are plans to upgrade its capacity.
• Historical production rates include:
  • 8.4 million barrels of oil per year in 2015.
  • 15 million barrels of oil per year in 2018.
  • 4.16 million barrels of oil per year in 2021.
  • 7.6 million barrels of oil per year in 2022.
• Gas production from the field was approximately 451.63 million cubic meters per year in 2015.

Reserves

• The original oil in place for the Okono/Okpoho fields was estimated at 417 million barrels as of 2002.
• As of the latest data, the field has recovered about 96.21% of its total recoverable reserves.

Infrastructure

• The Mystras FPSO is a critical component of the field's infrastructure, facilitating oil production and storage. Oil is exported from the FPSO by shuttle tankers.
• There are ongoing projects to replace existing pipelines, including the installation of new flexible 12” and 6” pipelines to replace the rigid 16” multiphase crude line and 8” gas lift pipelines.

Fiscal and Regulatory

• The project operates under a service contract with fiscal terms that include a signature bonus, royalty, and Petroleum Profit Tax (PPT). The contract also defines cost oil and profit oil allocations.
• The field is subject to the provisions of the Petroleum Industry Act (PIA) post-2019.

Current Status and Challenges

• As of 2024, the field faces several challenges, including negligible production, the need for new investment, FPSO integrity concerns, and pre-export financing issues.
• An expansion project associated with the Okono-Okpoho field is currently in the approval stage.

Contractors and Partners

• Key contractors involved in the project include Petroplat Energy and Verteville Energy.
• Melcurt Limited has been involved in various engineering, procurement, construction, and installation (EPCIC) projects related to the field, including the replacement of pipelines.

Production Outlook

• Based on economic assumptions, production from the Okono/Okpoho field is expected to continue until the field reaches its economic limit in 2028.