Erin Energy sees production loss after being hit with Oyo well trouble

Oil and gas company Erin Energy, formerly known as CAMAC Energy, has experienced issues with its Oyo-7 well, located in OML 120 offshore Nigeria, causing a production loss of about 1,400 barrels of oil per day. 

While the company managed to restart production at its Oyo-8 well during the second quarter of 2016, the Oyo-7 well could not come back on production naturally, after an emergency shutdown that occurred on July 1, 2016.

The company said that this was due to high water production from the well. The shutdown has resulted in a temporary production loss of about 1,400 barrels of oil per day.

Erin Energy said on Monday that plans are currently being made to attempt to bring the Oyo-7 well back by introducing nitrogen from the production facilities via subsea infrastructure to the well. The company intends to carry out this nitrogen lift after its next crude lifting scheduled for the week of August 15, 2016.

The company stated it is preparing for its next drilling campaign, which is planned to start in the fourth quarter of this year. Both the identification of a drilling rig and the procurement of long-lead well and subsea equipment are progressing well, Erin Energy said.

The Oyo-9 production well is planned as an additional development well within the central area of the Oyo field in Oil Mining Lease 120 and will be tied into the existing production facilities to increase the company’s production by approximately 6,000 – 7,000 barrels of oil per day.

Erin Energy has a 100% interest in Oil Mining Leases 120 and 121 located offshore Nigeria. The OML 120 contains the Oyo Field which is located approximately 75 km (46 miles) from the coast in water depths ranging from 200 to 500 meters. The Oyo Field started production in December 2009, and the wells are connected to the Armada Perdana FPSO.

Also on Monday, Erin Energy posted revenues of $23.2 million for the second quarter 2016, compared to nil revenue during the second-quarter 2015.

During the quarter, the company lifted and sold approximately 508,000 net barrels of oil at an average price of $45.58 per barrel, compared to no liftings during the same period 2015.

The company reported a net loss of $22.6 million for the second quarter of 2016, compared to a net loss of $9.2 million for the same period in 2015.

Average net daily production for the quarter was approximately 5,400 barrels of oil per day, compared to 4,400 barrels oil per day for the same period 2015.

Offshore Energy Today Staff

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