ELF Petroleum Nigeria Limited (EPNL), a subsidiary of Total has signed an agreement with Conoil Producing Limited to acquire a 40% interest in offshore Oil Mining Lease (OML) 136.
A statement released by Total described Conoil as the most important indigenous Nigerian petroleum company, adding that it holds the remaining 60% stake.

The Nigerian authorities have granted the necessary approvals.
Covering an area of 1,295 square kilometres, OML 136 lies around 60 kilometres offshore in water depths of 80 to 300 metres.

EPNL will be the technical advisor. Conoil, which has started operation in 1990 and operates six permits in the Niger Delta, remains the operator of OML 136.
Both parties will jointly conduct additional exploration of the lease, as well as appraisal and development of any discoveries.

A total of fourteen wells have already been drilled in OML 136, producing two large natural gas discoveries, Toju and Akarino. Appraisal of Toju, possibly followed by Akarino, will determine the block’s development potential.

The acquisition is in line with an integrated strategy of developing upstream natural gas resources that can be monetized through downstream projects, in particular liquefied natural gas production projects.
In Nigeria, Total is active in the LNG business through its participation in the Nigeria LNG (15%) and in the Brass LNG (17%) project, as well as the Obite and Afam power generation projects.

Following on the heels of the acquisition of an interest in OMLs 112 and 117 in 2006, this entry into OML 136 is expected to bolster Total’s onshore and offshore gas production portfolio in Nigeria.
The statement served noted that Total’s operations in Nigeria is one of the key growth areas in Africa and that driving this growth are conventional and deep offshore developments, as well as projects to develop natural gas reserves, notably through its interests in NLNG and Brass LNG.

The company disclosed that it expects to support rising LNG production in Nigeria by developing its own natural gas output from its pioneering interest in OML 58 where the company holds 40 per cent equity.
It also expects to grow its gas reserves from developments offshore, notably Amenam which came on stream at the end of 2006 and the Akpo and Ofon 2 projects, scheduled to begin production in 2008 and 2010 respectively.

“Discoveries on OML 112/117 and the new interest in OML 136 have given an added boost to this strategy of developing gas output in Nigeria,” the company disclosed.

Total is also a partner in the deep offshore Bonga fields (12.5%), with a daily output of 200,000 barrels per day and it is expected that when the Akpo field comes on stream, production would plateau at 225,000 barrels of oil equivalent per day.
The company also disclosed that it is pursuing exploration as well as its drive to acquire deep offshore leases where its operated OML 99, 100 and 102 contributes to production in Nigeria.

Development of the company’s Usan field is expected to enhance the group’s deep offshore production in Nigeria at the beginning of the next decade, while the Egina discovery on OML 130 where appraisal work is currently underway is expected to be developed separately

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