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Nigeria
BG Group commenced business development activities
in Nigeria in 2004. Nigeria offers the potential for
an excellent strategic fit with BG Group’s gas chain
capability and Atlantic Basin position in light of its
hydrocarbon potential.
Areas of operation
ABEOKUTA
PORTO
NOVO
LAGOS
OPL 332
IBADAN
OPL 284-DO
OKLNG
ESCRAVOS
OPL 286-DO
Key to operations
Gas
BG Group-
Oil
operated
block
Gas pipeline
BG Group
Oil pipeline
non-operated
block
0 100km
New information
• Exploration and appraisal drilling
commenced on OPL 286-DO
• Farm-in to OPL 284-DO
Key dates
AKURE
2006 PSC signed for OPL 332
Contracted LNG deliveries from
Nigeria LNG Trains 4/5 began
Memorandum of Understanding
(MoU) to buy LNG from Brass LNG
2007 SPA signed for Nigeria LNG Train 7
PSC and associated Downstream
MoU signed for OPL 286-DO
OKLNG Shareholders’ Agreement
(SHA) signed
BENIN
CITY
BRASS LNG
PORT
HARCOURT
NIGERIA
LNG
NIGERIA
CALABAR
LUBA
UPSTREAM
In 2006, BG Group acquired a 45%
participating interest in, and operatorship
of, Block OPL 332 from Sahara Energy
Exploration and Production Limited (Sahara),
which retains a 35% participating interest.
Other partners with participating interests
in OPL 332 are the Nigeria Petroleum
Development Company with 10%, and Seven
Energy Nigeria Limited with 10%. OPL 332
is located in up to 1 000 metres of water.
Acquisition of 3D seismic on the block was
completed in 2007, with the drilling of an
exploration well targeted for 2011.
In 2007, BG Group entered into a PSC
and associated downstream MoU for
Block OPL 286-DO with NNPC. BG Group,
together with Sahara, was awarded licence
OPL 286-DO in the 2006 Nigerian Oil Block
Mini-licensing round. OPL 286-DO is located
in deep water (200–1 000 metres), offshore
the western Niger Delta. BG Group is
the operator with a 66% participating
interest, along with partners Sahara (24%)
and Equinox Exploration Limited (10%).
OPL 286-DO contains an existing discovery,
Boi-1. Exploration and appraisal began in
late 2008. The first well, Ogide 1X,
encountered hydrocarbons and reached
a target depth of 1 511 metres. Drilling of the
second well, Boi-2A, began in February 2009
and successfully reached a target depth of
3 810 metres. Further seismic acquisition
aimed at imaging deeper potentials is
planned for late 2009.
In January 2009, BG Group acquired a 45%
participating interest in Block OPL 284-DO
from Sahara. Sahara will retain a 45% interest,
with the remaining 10% being held by Lotus
Energy Limited. BG Group assumes the role
of Technical Partner in the block while Sahara
remains Operator. OPL 284-DO is located in
deep water (200–1 000 metres) offshore the
western Niger Delta.
BG Group continues to evaluate further
upstream opportunities in Nigeria.
LNG
BG Group and its partners are developing
OKLNG, a liquefaction plant at Olokola, on
the south-western coast of Nigeria. In March
2007, the SHA was signed between NNPC,
Shell, Chevron and BG Group, which includes
the development of the launch project and
any future expansions, and sets out the
governance within the project company and
the shareholders’ rights to supply gas and
offtake LNG.
The OKLNG launch project is two trains,
each with a capacity of 6.3 mtpa of LNG,
and expandable in the future to a multi-train
natural gas liquefaction facility and marine
terminal. Additional technical work is being
done to optimise the final design. BG Group
has a 14.25% share in the project. All
shareholders will have the right to lift their
equity share of LNG.
In 2006, BG Group announced a MoU
with Brass LNG for the acquisition of LNG.
Volumes are expected to be 1.67 mtpa LNG.
The proposed agreement will be for 20 years.
These purchases complement the earlier
signing of a 20-year SPA for 2.3 mtpa LNG
from Nigeria LNG Trains 4 and 5 located
on Bonny Island. Deliveries under this
agreement commenced in 2006.
In 2007, BG Group signed a SPA with Nigeria
LNG for the acquisition of 2.25 mtpa of LNG
for a 20-year term that will be produced by
Nigeria LNG’s proposed Train 7 project in
Finima, Bonny Island.
BG Group Data Book 2009
19
AFRICA, MIDDLE EAST AND ASIA