Exploration & Production

HSI Energies Limited has a Collaboration Agreement with Eastlake Exploration & Production Limited, on an oil and gas exploration and production project in the Barracuda Field in OML-141 located in the Offshore Continental Shelf, Niger Delta, Bayelsa State, Nigeria. Eastlake Exploration & Production Limited signed an agreement on 30th October, 2023 with the Emerald Energy Resources Limited acting as Operator of OML 141 on behalf of the Joint Interest Owners – Emerald Energy Resources Limited, Amni Oil and Gas Limited and Bluewater Oil and Gas Investments Limited to provide certain technical and financial services and be the Technical and Financial Services Provider responsible for the development of the fields/prospects in the OML 141 NW Project area.

OML-141 is an undeveloped discovered hydrocarbon block located along the continental shelf in the shallow water and swamp area of the Niger Delta region in Nigeria. It covers an area of 1,295 sq. km with a maximum water depth of 90 feet. It is located in a prolific and proven hydrocarbon basin and lies close to several large producing fields in OML 29, 59 and adjacent to numerous huge undeveloped oil and gas fields which have not been developed due to reasons such as portfolio management, lack of appropriate gas monetization infrastructure in the area, and previous perceived security, operational risks in the adjacent blocks.

The northwestern corner of OML 141 (Barracuda Cluster) covering 105 square kilometers has huge Contingent and Prospective resources. Four (4) wells have been drilled till date in the Barracuda Cluster all encountering hydrocarbons at relatively shallow levels. All drilled wells were suspended for possible future re-entry.

The primary objective of this strategic partnership is to jointly explore, appraise, develop, and operate the oil and gas reserves within the Barracuda Field (OML 141 NW) in two clear Phases.

• Phase 1 – this entails pivotal activities such as subsurface studies, drilling and extended well testing of a further appraisal well Barracuda-5, and the preparation of a Field Development Planning (FDP). The extended well testing will be undertaken utilising a leased Early Production Facility (EPF). The integrated EPF will include two-phase (liquid/gas) separation and water treatment/handling and storage facilities. The produced stabilized and dewatered crude will be evacuated via barging from the site to a nearby third-party Floating Storage and Offloading (FSO) vessel.
• Future Development Phases – In a success case post Phase 1, Phase 2 will commence as a full Field Development and will be executed under a separate consortium agreement in all aspects of the project. Phase 2 development targets drilling nine moderate-rate wells in areas of low to medium geological uncertainty and re-entering two of the four current wells for development. The full field development will entail the deployment of a purpose-built Floating Production Unit (FPU) sized for up to 30,000bbl/d with adequate water handling capacity, a dedicated FSO vessel for the cluster development and a new oil evacuation pipeline connecting the FPU to the FSO. Produced gas is expected to be minimal and will be utilized as fuel gas for power generation in the field.