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Exploration & Production

At the end of 2011 Eni’s operations in Nigeria were carried out in a developed and non-developed area covering 40,625 square kilometres (with Eni’s share amounting to 8,491 square kilometres), concentrated in both the onshore and offshore areas of the Niger Delta, with a total of 46 mining leases. Eni’s operations in Nigeria are regulated by Production Sharing Agreements and concession contracts and, in the case of two leases, by service contracts where Eni is the contractor on behalf of Nigerian state-owned companies. In 2011 Eni’s share of hydrocarbon production amounted to 160,000 barrels of oil equivalent per day (boe/day), including 96,000 barrels/day of crude and condensates.

In the production/development phase Eni is the operator in four oil mining leases (OML) 60, 61, 62 and 63 (20% Eni) in both the onshore and offshore areas of  OML 125 (85% Eni) and OML 120-121 (40% Eni), while it is also involved in OML 118 (12.5% Eni) and in the OML 119 and 116 service contracts.As part of SPDC JV, the main oil joint venture in the country, Eni operates in 28 onshore blocks (5% Eni) and 5 conventional offshore blocks (12.86% Eni). In the exploration phase Eni is the operator of Oil Prospecting Leases (OPL) 244 (60% Eni), OML 134 (formerly OPL 211, 85% Eni) in the offshore area and OPL 282 (90% Eni) and OPL 135 (48% Eni) in the onshore area. The company is also involved in OML 135 (formerly OPL 219, 12.5% Eni).

During the year a number of operations were carried out with the aim of optimising the portfolio of assets in production in the country, as part of a strategy of selective growth of investments. These operations refer to: (i) the purchase of a 49% stake in Block OPL 2009 from GEC Petroleum Development Company (GDPC) and the allocation by the government of 50% of Block OPL 245 to Eni, together with the relative licences and the role of operator; (ii) the disposal of the company’s 5% stake in Blocks OML 26 and OML 42; (iii) the finalisation of an agreement to dispose of 40% of Blocks OML 120 and 121, subject to approval by the competent authorities.

 

BLOCKS OML 60, 61, 62 and 63Production. In 2011 the OML 60, 61, 62 and 63 licences provided 42% of Eni’s production in the country, equal to approximately 66,000 boe/day. Production of liquids and gas is supported by the Obiafu-Obrikom LNG plant, which has a treatment capacity of  approximately 28 million cubic metres/day of gas, and the Brass oil loading terminal, with a storage capacity of approximately 3.5 million barrels of oil. 

A significant part of the gas reserves from the four licences is destined for the N-LNG liquefaction plant at Bonny Island (see below). Part of the gas  production is used to fuel the Kwale-Okpai combined-cycle thermoelectric power station, which has the capacity  to generate 480 megawatts of electricity. In 2011, the amount of gas supplied to the power station amounted to approximately 2 million cubic metres/day, equal to around 11,000 boe/day (with Eni’s share amounting to approximately 2,000 boe/day). The project is part of the programme set up by the Nigerian government and Eni to reduce emissions of carbon dioxide into the atmosphere, and it is recognised as a Clean Development Mechanism (CDM) project for the purposes of implementing the Kyoto Protocol.

Development. The two main initiatives aimed at guaranteeing a supply of gas to the Bonny LNG plant and flaring down in the area continued during the year. As part of the initiative to supply gas to the Bonny LNG plant, the capacity of the Obiafu/Obrikom plant for the compression and export of gas was increased in order to ensure that Eni can supply 4.8 million cubic metres of feed gas for a period of twenty years to fuel the plant’s sixth train. The Tuomo gas field is being developed with the same aim, with start-up expected in early 2012. During the period 2010-2011, the flaring down  projects at the Kwale and Obiafu/Obrikom production units and at the Ebocha oil centre were completed. The programme is continuing with the upgrading of the flowstream for the Idu deposit  and of the Ogbainbiri treatment plant, with work expected to be completed in 2012.

 

Block OML 118Production. In 2011, Eni’s share of production from the Bonga deposit amounted to approximately 14,000 barrels/day of oil. The production  is supported by a Floating Production Storage and Offloading (FPSO) unit with a treatment capacity of 225,000 barrels/day and a storage capacity of 2 million barrels of oil. The associated gas is collected by a gathering platform situated in the EA field, from where it is sent to the Bonny liquefaction plant.

 

Block OML 119Production. The production came from the Okono/Okpoho deposits, and in 2011 Eni’s share amounted to approximately 7,000 barrels/day of oil from an FPSO with a treatment capacity of 80,000 barrels/day and a storage capacity of 1 million barrels.During the year work continued on completing the Phase 2A project to drill two underwater production wells connected to the FPSO already present in the area for

developing additional resources equal to 23 million barrels of oil, with start-up expected in 2012.

 

Block OML 125Production. Production came from the Abo deposit, and in 2011 Eni’s share amounted to 21,000 barrels/day of oil. Production is supported by an FPSO unit with a treatment capacity of 45,000 barrels/day and a storage capacity of 800,000 barrels.

 

Block OPL 245This area contains the highest potential non-developed mining deposits in the country’s deep offshore area. Operations only concern the pre-development and exploration phase. Discovered reserves are estimated to amount to approximately 500 million boe. Project operations are based on the accelerated development of the Zabazaba and Etan deposits, with start-up in early production expected in 2014. The preliminary development plan is for the installation of an FPSO with a capacity of 120,000 boe/day, the drilling of 28 production wells and the construction of connection facilities to the Bonny liquefaction plant.Exploration operations are planned to carry out an appraisal of the discoveries that are already present in the block.

SPDC Joint Venture (NASE)In 2011, production from SPDC JV represented approximately 30% of Eni’s production in the country and was equal to around 47,000 boe/day.

The Forcados/Yokri liquids and gas deposit is being developed, as part of the associated gas gathering integrated project to ensure the supply of gas to the domestic market through the existing Escravos-Lagos gas pipeline. Start-up is expected in 2013.In Block OML 28, work continued on the drilling campaign as part of the natural gas and oil integrated project in the Gbaran-Ubie area. The development plan is for the supply of natural gas to the Bonny liquefaction plant by means of the construction of a central processing facility (CPF) with a treatment capacity of approximately 28 million cubic metres/day of gas and 120,000 barrels/day of liquids.

Exploration operations produced positive results at the Opugbene 2 appraisal well, where gas and condensates were found in Block OML 36.