By Hector Igbikiowubo
Posted to the Web: Friday, July 29, 2005

The discoveries were made in blocks OPL 322 and the controversial OPL 245, both in frontier areas. In Shell parlance, a Big Cat prospect refers to oil wells with over 100 million barrels reserves potential.

A statement by the management of the Shell companies said Bu and the concession Bobo -1X was drilled in block OPL 322 to a total depth of 5,173 metres in 2,479 metres of water, making it the second deepest well in offshore Nigeria.

Drilling was completed on July 16, 2005, under budget, and found over 140 meters of hydrocarbon bearing sands. Shell Nigeria Exploration Properties Alpha Limited has a 40 per cent shareholding in OPL 322.

Etan-1X was drilled in block OPL 245 to a total depth of 4,574 metres in 1,720 metres of water. The well logged 120 metres of hydrocarbon bearing sands.

The company statement said OPL 245 was 100 per cent held by Shell Nigeria Ultra Deep Limited. Drilling was completed on February 20, 2005.

Speaking on the development, a Shell spokesman who pleaded anonymity said OPL 245 was legally withdrawn from the former owners, Malabu Oil and Gas, by the Federal Government and re-awarded to Shell under a competitive tender. "Government has legally withdrawn the block from Malabu and the block was subsequently awarded to Shell. We are, therefore, legal title holders of OPL 245," a Shell spokesperson said.

The wells were drilled by Transocean’s rig, the Deepwater Pathfinder, under a unique rig sharing initiative with other Nigeria-based operators, fully supported by government through the National Petroleum Investment Management Services (NAPIMS). The rig sharing arrangement enables operators to achieve improved synergy, delivery time and cost efficiency.

Mr. Chima Ibeneche, Managing Director of Shell Nigeria Exploration and Production Company Limited, an affiliate of the companies, said the company was thrilled by these exploration successes "We are naturally thrilled by these exploration successes in deepwater Nigeria, which could add new material oil to Shell’s portfolio. These recent discoveries have been made in a difficult geological frontier setting, and are the fruit of significant investments in local geological knowledge and application of Shell’s deepwater technology. Shell is proud of the contribution it is making towards the realisation of the potential of Nigeria’s frontier deepwater hydrocarbon province."

OPL 245 is a giant oil block in the deepwater area of the Niger Delta, with estimated reserves of more than one billion barrels and has been subject of litigation among Malabu, Shell and the Nigerian government.

Malabu had taken Shell to court in New York City in 2002, accusing the multinational of colluding with officials of the state to revoke its oil prospecting licence. Malabu was asking one billion dollars in compensation at the time.