Africa Oil and Gas has stated in its recent Q3 2023 operations update  that the Nigeria OML 127 has been voluntarily converted to operate under the new Petroleum Industry Act from March 1, 2023, and is now subject to 30% Corporate Income Tax regime compared to the previous 50% Petroleum Profit Tax regime.

Meanwhile OML 130 drilling campaign has continued with two water injection wells and one production well on the Egina oil field and have been successfully completed and put online.

The OML 130 drilling campaign that commenced on February 22, 2023, continues with the 3 wells, two water injectors and one production well, successfully drilled and completed on Egina. The infill drilling has offset production declines with the first quarterly increase in the average daily production since second quarter 2021.

The drilling rig is currently drilling the first of 3 wells on Akpo West field. The wells will be tied into the Akpo FPSO. The multi-well program is planned for up to 9 wells on Egina and Akpo in the license area during 2023 and 2024.

Acquisition of 4D monitor seismic surveys are planned for Akpo, Egina and Agbami during late 2023 through early 2024. The acquisition plan also includes a baseline 4D seismic survey of the Preowei field. The surveys will support future drilling decisions across both OML 127 and OML 130.

Full year 2023 production outlook remains within management guidance for both working interest and economic entitlement after Q3 2023 production results. Beyond the aforementioned drilling campaign on Egina and Akpo, which will offset production decline, there is a planned maintenance shutdown for the Akpo field taking place during Q1 2024, this was previously planned for Q4 2023.

Following the 20-year renewal of the OML 130 license on May 28, 2023, FEED studies are expected to take place through the fourth quarter of 2023, which could facilitate the final investment decision for the Preowei oil discovery development project. Preowei oil field is to the north of Egina FPSO and is a development opportunity via a satellite subsea tie-back project to the Egina FPSO.