Nestoil Deploys Indigenous Rig, Boosts Oil Output From OML 42
Nestoil Group has completed workover operations on two producing wells in Oil Mining Lease (OML) 42, using an entirely Nigerian-crewed drilling rig, in a move aimed at increasing crude oil production from the asset.
The company said the successful deployment of its Pathfinder 500 rig marked the first productive assignment of the rig since it was acquired about eight years ago, positioning the group to commence further in-field drilling activities in OML 42.
According to a statement issued by the company at the weekend, the Pathfinder 500 was mobilised to the field by Scorpio Drilling International, a strategic business unit of Nestoil Group, and completed workover operations on two producing wells without any Health, Safety and Environment (HSE) incident.
The rig was subsequently safely demobilised to base after the operation, which the company said contributed to incremental oil production from the asset.
The Pathfinder 500 is one of two rigs acquired by Nestoil Group as part of an investment estimated at about $28 million. The second rig is the Scorpio 300.
The latest development is significant for the company because the Pathfinder 500 had remained idle for approximately eight years after its acquisition, amid doubts over whether it would eventually be deployed for productive operations.
Chairman of Nestoil/Neconde Group, Dr Ernest Azudialu Obiejesi, described the successful deployment as a defining moment for the group and a demonstration of Nigeria’s growing indigenous drilling capacity.
Obiejesi said the decision to acquire the rigs was informed by the high cost and operational difficulties associated with depending solely on hired drilling equipment in Nigeria.
He explained that, as an asset owner in OML 42, the group required dedicated drilling capacity to undertake workovers, revive mature wells and eventually drill new wells as production fields mature.
With the successful workover campaign completed, he said the company was now better positioned to proceed with its planned in-field drilling programme.
“This is a defining moment for us,” Obiejesi said, noting that the rig’s successful mobilisation, incident-free operations and safe demobilisation represented a major achievement after years of inactivity.
He also stressed the significance of the operation being executed entirely by Nigerian personnel.
According to him, the refurbishment of the rig, its deployment and crewing were undertaken by Nigerians without foreign partnership or support, while the crew currently operating the rig is 100 per cent Nigerian.
Obiejesi attributed the availability of the required technical expertise to decades of capacity development by international oil companies operating in Nigeria.
He argued that the experience accumulated by Nigerian professionals in the oil and gas industry had helped position the country as a source of skilled drilling personnel for other oil-producing countries.
He commended the teams at Scorpio Drilling International and other personnel involved in the rehabilitation, mobilisation and operation of the Pathfinder 500.
The Nestoil chairman further said the achievement had implications beyond the company’s immediate production objectives, noting that Scorpio Drilling International’s ownership of two rigs placed it among companies with indigenous rig assets operating in Nigeria.
He described indigenous ownership of drilling assets as an important indicator of local capacity in oil-producing jurisdictions.
Nestoil Group, through Neconde Energy, holds interests in OML 42 and has continued to invest in drilling, workover and well-services infrastructure to sustain and increase production from the asset.
Scorpio Drilling International operates the Pathfinder 500 and Scorpio 300 rigs and provides drilling services to Nestoil Group as well as third parties within Nigeria’s oil and gas industry.
The company said the latest workover campaign forms part of its broader strategy to redevelop OML 42 and unlock additional in-field drilling opportunities as it seeks to sustain production from the mature asset.
COURTESY: Independent