Akrake Petroleum, a joint venture company of Singapore’s Rex International Holding, has signed a production sharing contract (PSC) for operatorship and a working interest in a field offshore West Africa. The plans include redeveloping the field and restarting production.
Akrake Petroleum, a wholly-owned subsidiary of Porto Novo Resources, Rex’s 70%-owned indirect joint venture company established this month, signed the PSC for operatorship and a 76% working interest in Block 1 Sèmè Field in Benin.
The remainder of the working interest is held by the government of Benin holding 15% and Octogone Trading holding 9%.
The offshore Block 1 in Benin covers 551 square kilometers and is located in shallow water depths of 20 to 30 meters. The Sèmè Field, discovered by Union Oil in 1969, was first developed by Norwegian oil company Saga Petroleum and had produced approximately 22 MMbbl between 1982 and 1998, before production was stopped prematurely due to low oil prices of around $14 per barrel in 1998.
Akrake will initially redevelop the field and apply its low-cost production system comprising a jack-up mobile production unit (MOPU) and a floating storage unit (FSO) to restart production. According to the company, horizontal wells and modern completion technology for water control will be used to maximize total oil recovery.
Previous drillings in the Sèmè Field in 2014 to 2015 have proven additional deeper hydrocarbon accumulations of oil and gas. Further appraisal tests will be undertaken in conjunction with the early production drilling. Additional reserves and resources, if any, can be produced through the infrastructure to be installed in one of the reservoirs.
Dan Broström , Executive Chairman of Rex International Holding, said that the company will tap on the geological and geophysical expertise and the deep technical and operational know-how of its teams in Norway and Oman, and establish a professional team locally, to work towards filing a field development plan (FDP) in 2024 to restart production, as well as evaluate exploration opportunities to unlock unexploited oil and especially gas potential in the field.
“The Rex Group has been on the lookout for new assets in different regions to mitigate geographical concentration risks, increase group production numbers and replenish reserves and resources in our current producing assets. The terms for the Block 1 PSC are favourable for an economically viable development to restart production in the short-term,” said Broström .
“We have established a good working relationship with the Benin authorities and our local partner, Octogone Trading, and look forward to cooperating with them in the Block 1 partnership.”
Rex International Holding entered into a joint venture agreement on December 21 with Monarch Marine Holding (MMH) for carrying out the business of owning and operating offshore oil and gas assets in West Africa.
In connection with the joint venture, Rex received confirmation that the Porto Novo Resources JV company had been incorporated on December 19 in the British Virgin Islands. The company is 70% held by Rex and 30% held by MMH.