London-based Panoro Energy announced today that the commissioning of the Front Puffin floating production storage and offloading (FPSO) unit has been completed.
The FPSO is on hire at the Aje field offshore Nigeria, following a 72-hour test.
“We are very pleased with the reservoir performance at Aje and are planning the next steps to realise its full potential,” Panoro Energy Chief Executive Officer, John Hamilton, said.
FPSO Commissioned Offshore Nigeria
Front Puffin has a production capacity of 40,000 barrels of oil per day (bpd) and a storage capacity for 750,000 barrels.
The FPSO arrived in Nigeria in March 2016 and first oil production from the field started on May 3, 2016.
According to the exploration and production company, first crude is expected from the FPSO in the end of August.
Panoro Energy Nigeria Operations Map
However, Panoro said, it has not yet been possible to stabilise production rates due to mechanical issues and Nigerian regulatory approvals.
Until these issues are resolved, which the company said could take until the end of the fourth quarter of the year, production should be maintained at a restricted daily rate of approximately 7,000 to 8,000 barrels of oil.
Aje Crude Attracts Multiple Buyers
As well as this, the company said it has achieved material reductions in operating costs at Aje, while efforts are being made to secure further savings.
Meanwhile, laboratory assays have been delivered on crude oil from the Aje field, which prove the oil is of high quality grade – approximately 42 degrees API – as expected.
As a result, several international oil companies and trading houses have shown interest in buying crude from Aje, Panoro said.
Work is continuing for the planning of the Aje phase 2 and phase 3 as well as for the evaluation of the wider exploration potential on OML 113.
The Aje oil field was discovered in 1997 and is located on the OML 113 licence offshore Nigeria.
Yinka Folawiyo Petrolem Company operates the field, with Panoro Energy as a partner in the licence.