An Aberdeenshire oil firm’s plans to reopen a Nigerian production plant which has been closed for seven years has stalled again.
Westhill-based Eland said it had encountered more “frustrating” delays on the OML 40 onshore development, which had been due to finally resume production earlier this month.
But last night the firm’s chief executive said the firm was on the verge of unlocking the licence’s huge value.
The project to resume production from two wells that were shut seven years ago involves the laying of several miles of replacement flowlines, the repair of an export pipe and the recertification of existing facilities.
The Aberdeen-based company posted a first-half loss of £6.8million – more than double the same period last year – after heavy investment in staff and studies over the last few months to get the field ready.
The licence area, which includes the previously-shut-down Opuama field, had been due to restart operations in the first half of the year but delays with contractors and procurement has left it behind schedule.
The firm now hopes to start work in December.
Chief executive Les Blair said: “Our immediate focus is to restore oil production on OML 40 and we have a close working relationship with the operator, NPDC, to achieve this goal.
“In parallel we continue planning for the extensive development drilling campaign on OML 40, starting with six wells on the Opuama Field.
“The delays we have experienced are frustrating but not unexpected in a project of this complexity and in the environment in which we are operating.
“The management of Eland have significant experience of working in Nigeria and have established excellent working relationships with NPDC and all of our stakeholders in the licence area.
“This will stand the company in good stead to unlock the value inherent in OML 40, which will be amply demonstrated when the drilling campaign gets under way.”
The field is expected to have reserves of at least 54million barrels.
Year-end exit production rate is anticipated to be in excess of 2,500 barrels a day from the planned restart of the two existing wells in the Opuama Field.
It is then anticipated that production will increase by 3,000 barrels a day during 2014.