OMLs 67, 68, 70 and 104

Seplat Offshore OMLs 67, 68, 70 and 104

On 25 February 2022, Seplat entered into the Agreement to acquire MPNU (Mobil Producing Nigeria Unlimited) from ExxonMobil Corporation. MPNU operates a joint venture with NNPC. NNPC has a 60% share and MPNU has a 40% share in the MNPU/NNPC JV which holds interests in four oil mining leases (OMLs 67, 68, 70 and 104) and associated infrastructure. The portfolio also includes a 51% interest in the BRT (Bonny River Terminal) and Gas Processing Plants at the EAP (East Area Project) and Oso location. In Addition, MPNU also holds a 9.6% non-operating participating interest in the unitised Amenam-Kpono field which is operated by TotalEnergies E&P Nigeria Limited (TEPNG).

Post Change in Control (CiC) on 12 December 2024, Seplat became the operator of the four blocks on behalf of the NNPC/SEPNU Joint Venture. These blocks are located shallow offshore, South of Akwa Ibom State in Nigeria. Production is predominantly from key fields, including Ubit, Usari, Etim, Inim, Edop, Asasa, Oso and Yoho. The company’s liquid production is monetized via three export terminals: QIT (Qua Iboe Terminal) and Yoho FSO (Floating Storage and Offloading) for Crude oil and Condensate and the Bonny River Terminal (BRT) for Natural Gas Liquids (NGLs). Since completing the acquisition of MPNU, Seplat has grown production through restoration of numerous idle wells, prioritizing asset integrity and reliability improvement. With a world-class hydrocarbon resource base, Seplat is poised to deploy multiple rigs and deliver associated projects to optimally develop and transform the business. Also, the Company has sustained gas sales to the Nigeria LNG (NLNG) and is prioritizing further commercialization of the significant gas resources in line with Seplat’s energy transition strategy leveraging gas as the transition fuel.

Background

OML 67

It covers an area of 956km2 and is located offshore, south of Akwa Ibom State. It is one of the largest blocks in the Niger Delta, came onstream in 1970 and currently utilizes five production platforms. The Ubit, Edop, Etim, Inim and Asasa fields are the main producing fields in the OML. Crude is sent from the production platforms to QIT through alternate pipelines for processing and export. NGL extraction from wet gas is carried out at the EAP located in OML 67 – extracted NGL are sent to BRT via pipeline for processing, storage and sales. Future opportunities include an extensive portfolio of infill wells using existing surface facilities, pressure maintenance projects, and multiple fields gas blowdown. The block has a significant exploration upside including identified and high-graded prospects. The license will be due for renewal by 2031.

OML 68

It covers an area of 86km2 and is located offshore, south of Akwa Ibom State. OML 68 came onstream in 1970 and utilizes the single Idoho production platform. There is currently one producing field on the block (Idoho). There are two discovered undeveloped fields, namely Idoho North and Idoho West. OML 68 crude joins OML 67 and OML 70 crude at the Idoho production platform and is then sent to QIT for processing and export. Future opportunities include projects at the existing platforms and new drilling activity as part of a satellite field development plan to monetize undeveloped resources. The block has significant exploration potential within the identified exploration targets. The license will be due for renewal by 2031.

OML 70

It covers an area of 1,121km2 and is located offshore, south of Akwa Ibom State. OML 70 came onstream in 1970 and utilizes four production platforms. Also includes a 9.6% non-operated interest in the Amenam-Kpono field which straddles OML 70 and OML 99 operated by TotalEnergies E&P Nigeria Limited (TEPNG). Usari, Oso, Abang, Ekpe and Asabo are the main producing fields in OML 70. Crude and Condensate are sent to QIT for processing and export – Crude sent through Idoho production platform and Condensate gathered at the Oso production platform. NGLs extraction from wet gas is carried out at the Oso extraction plant – extracted NGLs are sent to BRT via pipeline for processing, storage and sales. Future opportunities include several infill wells, satellite tie-ins, facilities optimization projects and gas blowdown. The block has significant exploration potential with high-graded leads. Current gas sales to Nigeria LNG is supplied from Oso gas processing facility. Signiant gas reserves and resources will be developed from Oso, Nsimbo, Nkop and Obu fields. The license will be due for renewal by 2031.

OML 104

It covers an area of 292km2 and is located offshore, south of Akwa Ibom State. There are currently two producing fields on the block, namely Yoho and Awawa, and six discoveries (Aran, Isuo, Ufan, Nwana, Pegi and Okuk) with significant contingent resources. OML 104 came onstream in 2002 and utilizes the Yoho production platform. Crude is exported using the Yoho FSO. Future opportunities include identified infill wells and extended reach drilling projects targeting undeveloped fields (minimizing the need for new platform infrastructure), gas blowdown, and tie-in to gas infrastructure. The block has significant exploration potential with high-graded leads. The license will be due for renewal by 2038.