%20for%20Block%201,%20offshore%20Benin,%20which%20contains%20the%20Sèmè%20oilfield,%20for%20three%20months./pp%20style=font-weight:%20400;The%20Minister%20of%20Hydrocarbons%20for%20Benin%20is%20the%20Vice-President%20of%20the%20African%20Petroleum%20Producers%20Organization%20(APPO)./pp%20style=font-weight:%20400;Zenith's%20CEO,%20Andrea%20Cattaneo,%20commented:%20We%20are%20extremely%20pleased%20to%20have%20been%20granted%20the%20Exclusivity%20to%20negotiate%20and%20finalise%20the%20terms%20of%20a%20PSC%20for%20Block-1%20by%20the%20authorities%20in%20Benin./pp%20style=font-weight:%20400;Block-1%20represents%20a%20potentially%20transformational%20development%20opportunity%20for%20Zenith%20because%20of%20its%20sizeable%20unexploited%20potential,%20indicated%20by%20its%20independently%20assessed%20oil%20and%20gas%20reserves%20and%20past%20production,%20and%20existing%20field%20infrastructure./pp%20style=font-weight:%20400;We%20view%20Benin%20as%20an%20attractive%20jurisdiction%20for%20foreign%20investment%20and%20we%20look%20forward%20with%20great%20enthusiasm%20to%20working%20closely%20with%20the%20local%20authorities%20towards%20successfully%20formalising%20the%20PSC./p img%20class=%20wp-image-5602%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2023/01/f8e33358-a5a6-4810-bf3a-eafd8c0e99a2-300x131.jpg%20alt=%20width=408%20height=178%20/p%20style=font-weight:%20400;strongABOUT%20BLOCK-1/strong/pp%20style=font-weight:%20400;The%20“Union%20Oil”%20block,%20which%20covers%20551%20sq.%20km%20and%20has%20more%20than%20355%20sq.%20km%20of%20current%203D%20seismic%20data%20obtained%20between%202001%20and%202014,%20was%20discovered%20in%201967%20and%20is%20situated%20in%20shallow%20water%20(30%20m)%20offshore%20with%20onshore%20infrastructure%20and%20a%20tank%20farm%20for%20processing%20oil%20output./pp%20style=font-weight:%20400;A%20second%20oilfield%20called%20Sèmè%20North%20was%20found%20in%202015,%20and%20it%20was%20reported%20that%20there%20were%20100%20million%20extra%20barrels%20of%20oil%20there%20as%20well.%20The%20recoverable%20reserves%20with%20a%20recovery%20factor%20of%2016%%20were%20estimated%20to%20be%2016%20million%20barrels%20(2P)./pp%20style=font-weight:%20400;Block-1%20has%20seen%2027%20wells%20drilled%20so%20far,%2024%20of%20which%20were%20in%20the%20original%20Sèmè%20oilfield%20and%20the%20final%20three%20in%202014–15%20to%20find%20Sèmè%20North.%20These%20wells%20found%20and%20tested%20oil%20in%20the%20H5%20&%20H6%20reservoirs,%20which%20are%20different%20structures%20and%20are%20the%20same%20reservoirs%20that%20were%20produced%20in%20the%20original%20Sèmè%20oilfield.%20However,%20additional%20development%20activities%20were%20considered%20non-commercial%20because%20of%20the%20oil%20price%20that%20was%20in%20effect%20at%20the%20time%20(about%20$30%20US)./p){kind=link}
The Ministry of Water and Mines of the Republic of Benin has granted Zenith Energy Ltd. exclusive rights to discuss and settle the conditions of a Production Sharing Contract (PSC) for Block 1, offshore Benin, which contains the Sèmè oilfield, for three months.
The Minister of Hydrocarbons for Benin is the Vice-President of the African Petroleum Producers Organization (APPO).
Zenith’s CEO, Andrea Cattaneo, commented: “We are extremely pleased to have been granted the Exclusivity to negotiate and finalise the terms of a PSC for Block-1 by the authorities in Benin.
Block-1 represents a potentially transformational development opportunity for Zenith because of its sizeable unexploited potential, indicated by its independently assessed oil and gas reserves and past production, and existing field infrastructure.
We view Benin as an attractive jurisdiction for foreign investment and we look forward with great enthusiasm to working closely with the local authorities towards successfully formalising the PSC.”
ABOUT BLOCK-1
The “Union Oil” block, which covers 551 sq. km and has more than 355 sq. km of current 3D seismic data obtained between 2001 and 2014, was discovered in 1967 and is situated in shallow water (30 m) offshore with onshore infrastructure and a tank farm for processing oil output.
A second oilfield called “Sèmè North” was found in 2015, and it was reported that there were 100 million extra barrels of oil there as well. The recoverable reserves with a recovery factor of 16% were estimated to be 16 million barrels (2P).
Block-1 has seen 27 wells drilled so far, 24 of which were in the original Sèmè oilfield and the final three in 2014–15 to find Sèmè North. These wells found and tested oil in the H5 & H6 reservoirs, which are different structures and are the same reservoirs that were produced in the original Sèmè oilfield. However, additional development activities were considered non-commercial because of the oil price that was in effect at the time (about $30 US).