First E&P, Schlumberger FID for joint development of OMLs 83 & 85 delayed
Nigerian oil firm, First E&P has an agreement with Schlumberger to jointly develop Oil Mining Leases (OMLs) 83 and 85, but the Final Investment Decision is unlikely to be taken before June 2018 for the development of the acreages which include Anyala (OML 83) and Madu (OML 85) fields in shallow water off Nigeria, according to Africa Oil + Gas Report.
One key reason for the delay is that Schlumberger and First E&P allegedly do not see timing the same way. “There has been misalignment between the two partners on several milestones”, a source at the Nigerian National Petroleum Corporation (NNPC) explained.
Taking FID anytime after June 2018 means at least a full year after the NNPC, First E&P and Schlumberger signed a tripartite agreement for development of those two fields. Project FID was supposed to have been taken by December 2017, with first oil expected by 2019. This looks unlikely at present.