MX Oil has deferred the drilling of another oil well on the Aje field offshore Nigeria.
Oil production started last year but has been plagued with problems.
The Aje-4 well, the first to go into production, has continued to produce since it was brought on-stream and production has now stabilised after a period of decline due to rising water cut.
Production from the Aje-5 well has been limited and has required subsurface intervention.
This intervention is in the process of being completed and will include re-connection to the subsea tree.
The partners in the project are currently considering whether it would be more appropriate for the next stage of the field development to focus on gas production rather than drilling additional oil wells.
The region is thought to contain “significant” gas resources.
It is expected that a competent person’s report will be updated shortly with a focus on gas using the new data obtained from the operational work on the Aje 5 well.
Previously, it was anticipated that a further well, Aje 6, would be drilled in the short term to increase oil production from the field.
But until the partners have concluded as to the most appropriate next steps, the drilling of this well will be deferred.
MX chief executive Stefan Oliver said: “Given the potential scale of the gas opportunity versus the risk and reward of drilling additional oil wells, it makes sense for the partners to consider and reflect on what the next stage of the development should be.
“This discussion is currently ongoing and I look forward to updating the market in due course as the thinking develops.”
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