All Grace Energy Limited Commences Production Test At Ubima Marginal Field (OML 17)

Following the successful re-entry, work-over and completion of Ubima-01 well, All Grace Energy Limited (AGEL), the Operator of the Ubima Marginal Field commenced production via extended well test program from the field on the 15th of November 2019.

The Department of Petroleum Resources (DPR approved the Extended Well Test for the Ubima-01 well for All Grace Energy Limited recently and the company commenced crude evacuation from the well test via trucking to the Otakikpo Marginal field for further storage and eventual crude evacuation and export. The Company expects to ramp up to about 2000 bopd over the next couple of weeks.

This is a significant milestone for a field that was discovered by SDPC since 1963 but had been left undeveloped for close to 6 decades. The well test program will provide valuable subsurface and production information (PVT data, reservoir pressures, reservoir drive mechanism, reserves, recovery factors etc), all of which are critical to understanding planning future field development.

For the full field development plan (FDP), All Grace Energy Limited (AGEL) is under discussions with a consortium of international stakeholders (financiers) to drill more wells and upgrade existing facility to accommodate the increased production target of 20,000 barrels per day. The FDP also includes the construction of a 20 inch, 120km pipeline from the Ubima field to the proposed Otakikpo Onshore Terminal.

This plan is imaginative and unprecedented for an indigenous Company and it is expected to provide a groundbreaking infrastructure for the Nigerian E&P across the Eastern Niger Delta. The pipeline is expected to pass through or straddle several prolific but hitherto stranded marginal fields, thereby unlocking the potential of the fields for faster, cheaper and more efficient export route to the market. There are also significant benefits to Rivers State and the country since most of the reserves from these fields had been written off as uneconomical.

The Technical Director of AGEL, Dr. Lyberty Udochu, commends the team efforts towards achieving this significant milestone and noted that while the team continues to develop and maximize the field’s potential, the operations must be carried out in the most environmentally compliant manner. He also said that the community relations cannot be overemphasized and that the Company will always consider the community’s interest and carry Community along in the field’s development dealings while ensuring full compliance with the terms and conditions of our MOU with them.

AGEL’s director for Corporate Affairs, Mr. Taiwo Onasile re-emphasized that the Field’s Development Plan aims at achieving zero gas flares through the gas to power and LPG production under the company’s small-scale gas utilization programme (SSGUP) as part of the field development. Commending the DPR for speedy approvals of the well test and evacuation permits, he noted that the DPR’s support is instrumental in attracting the necessary financing to unlock potentials of the field as it boosts investors’ confidence on the project.

He further stated: “This marks a major step forward for us and our partners, to fully develop the Ubima field, we shall work hard to fully develop the field. Our intention is to be the benchmark for developing and maximizing hydrocarbons in the country in a most environmentally compliant manner.”