OML 42 is located onshore West Delta with an area of 814 km2. OML 42 has 7 fields which have produced hydrocarbons and 5 undeveloped discoveries. The 2P reserves stand at 600 MMbbls.
Production in OML 42 commenced in 1969 and attained a peak gross production rate of about 250,000 boepd in 1974. Production, primarily of oil, from Egwa, Batan, Ajuju, Odidi and Jones Creek fields continued until early 2005 when the producing fields were shut in due to security issues in the Niger Delta area. At this time production stood at 50,000 bopd and 80 MMScf/d of natural gas. In February 2011, Batan and Ajuju fields, producing 15,000 bopd, were rehabilitated and re-opened by Shell (SPDC) before the divestment of its 45% interest to Neconde, while the 55% interest belonging to the Nigerian National Petroleum Corporation (NNPC), was assigned to the Nigeria Petroleum Development Company (NPDC), NNPC’s E&P subsidiary.
In early 2012, Neconde and NPDC agreed a work program to rehabilitate the remaining shut-in fields, namely, Odidi, Jones Creek and Egwa to reopen about 80 wells for production. In October 2013, rehabilitation works started in Odidi field and it was re-opened in October 2014. Odidi is currently producing at 22,000 bopd. Rehabilitation works at Jones Creek started in July 2014 and was completed in August 2015. Production from Jones Creek currently stands as 36,000 bopd. Egwa rehabilitation has commenced and is expected to complete in 2019 with production of 20,000 bopd.
In addition to oil, OML-42 has up to 6 TCF of gas resources that are planned to be developed in the next 4-5 years towards delivering about 500 MMScf/d to the domestic gas market. The gas development will also monetise a significant amount of condensate resources. Currently the NPDC/Neconde Joint Venture is rehabilitating the Odidi gas Central Processing Facility to bring the first tranche of 80 MMScf/d of gas to the domestic market by end-2018.
OML 42 has a total of 7 flow stations with a combined capacity of 345,000 barrels of liquid per day. As at Q1, 2018, the Batan, Jones Creek and Odidi Flow Stations are operational, while Egwa will be re-opened in 2019. The liquids are transported to the Forcados Export Terminal via the Trans-Forcados Pipeline (TFP).
Frequent failures of TFP due to age, crude theft and sabotage have made dependence on it for crude transport uneconomic, onerous and inefficient. In response to this, the OML 42 JV has developed an alternative evacuation route for its crude via barging to the Ugo Ocha Export Terminal. Implementing this alternative has necessitated introducing oil and water treatment in the field to meet export crude quality requirements and environmental standards for water disposal. The alternative evacuation solution for Odidi and Jones Creek has gone live.
The Central Processing Facility (CPF) for gas in Odidi is also currently being revamped to deliver up to 80 MMscf/d to Escravos-Lagos Pipeline System (ELPS) by the 4th quarter of 2018.