Best Practice for Marginal Oil Field Development and Production Sustainability beyond First Oil Production. – Niger Delta Case

Abstract

Abstract More than 13 years after the award of 24 marginal fields and subsequent award of a total of 30 marginal fields by the Federal Government of Nigeria, only 30% of the operators/farmee have being able to achieve first oil and sustained production for more than one year. An equivalent of 58% have achieved first oil. Since the award, these operators and farmee have encountered various financial and technical challenges in bringing their fields to first oil. This paper is an outcome of years of experience working with marginal field operators in the development and management phase of their fields in Nigeria. The discussion in this paper will cover field development planning – from modelling to economics and reservoir management strategies directed from case experiences. It outlines major technical challenges faced by marginal field operators in developing their fields and proffers effective and pragmatic solutions based on best practices in the oil and gas industry to help minimize some uncertainties associated with the field development, optimize allocation of resources, achieve first oil and ultimately, increase production life of the field through sound reservoir management strategies.