San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF)’s 11.5% owned associate Decklar Resources, the operator of the Oza field in Nigeria, which has signed a crude handling agreement to deliver oil for injection into the Umugini pipeline.
The crude will be supplied to the UPIL crude handling facilities for Umugini and it will ultimately be delivered to the SPDC JV Forcados Oil Terminal for export and sale. It is anticipated that first shipments of oil to UPIL will start in early April.
After that, the next phase for the mid-to-long-term solution is seen as barging oil directly from storage facilities at Oza to a floating storage and offloading (FSO) facility, in shallow waters of the Bonny River. The company noted that shipping and exporting crude using barge and FSO could enable higher crude oil volumes per shipment and greater transportation and cost efficiency.
Decklar noted that Oza’s on-site storage tanks hold around 20,000 barrels of oil, and as the Oza-1 well is brought into commercial production the company expects rates of 1,200 to 1,500 barrels of oil per day.