BY KAYODE EKUNDAYO
.As partners lifted 225,000 bbl in April
Partners in the Lagos Aje Field said that cost of producing a barrel of crude oil from the well has lowered to $28 just as they said that a total of 225,000 barrels were lifted from the field in April this year.
ADM in a report stated that revenue interest in Aje Field asset increased from 5 per cent to 9.2 per cent by acquiring 25 per cent of the interest, rights, and obligations held by EER while total gross production volume decreased to 698,649 against 890,203 barrels of oil in 2020 with 36,295 net to ADM, reflecting a decision from the JV Partners to carry out a more thorough and extended period of maintenance on the FPSO while oil prices were depressed “due to the prevailing low oil price at the time, ADM elected to not participate in the 13th lifting in March 2020. The Company participated in the 14th lifting in October 2020, which totalled 557,091 barrels with a net share of 33,056 barrels to ADM. Post period, the 15th lifting was completed in April 2021 for a total of 225,000 barrels, equating to an increased net share to ADM of 27,675 barrels post completion of the EER transaction. The lower production volumes were due to a decision from the JV Partners to carry out a more thorough and extended period of maintenance on the FPSO while oil prices were depressed.”
Partners reduced operating costs at project level by 37.5 per cent on average, reducing break-even cost of production to $28 per barrel”
The company noted that in April 2021, it acquired a controlling interest in a risk sharing agreement for the development of the large-scale Barracuda Field. The overall consideration for the investment may total up to $1.3million payable in cash and equity.
However, the company announced un-audited revenue of £0.8million against 2019 £2.5 million, reflecting a reduction in production volumes, fewer lifting in the period due to COVID-19 and ADM’s decision to not participate in the 13th Lifting due to low oil prices at that time.
ADM said that it had consolidated its interest in OML 113 during the year and nearly doubled its net revenue, reserves and production share in the asset.
“The Group increased its revenue interest from 5 per cent to 9.2 per cent by acquiring 25 per cent of the interest, rights, and obligations held by EER (Colobos) Nigeria Limited (“EER”). This has increased ADM’s share of net 2P reserves from 8.9 MMboe to 16.4 MMboe with net daily reserves, based on production at the time of the deal, rising from 148 bopd to approximately 273 bopd.”