Nigeria's Neighbour Launch Oil Block Operation

Adedayo Osho

Akkrake Petroleum – a subsidiary of the Rex International-Monarch Marine Holding joint venture – has signed a production sharing contract for a 76% operated interest in the Block 1 Sèmè Field at offshore Benin Republic.

Seme Town in Benin Republic shares border with Nigeria's southwest region. And Seme Border is a settlement in Nigeria on the border with Benin, thirty minutes drive from Badagry on the coastal road between Lagos and Cotonou.

Discovered by Union Oil in 1967, several companies stiffly competed to take on Benin's only oil field, which has been dormant since 1998. In the tussle were Baobab Energy Africa, founded by former Tullow energy executives; and Zenith Energy. Moving forward, Benin's Sèmè oil field (block 1) has been taken over by the Singapore-based Rex International Holdings.

The company plans to revitalize the 551 km2 block through a production system featuring a jack-up mobile production unit and a floating storage unit. Accordingly, Akkrake Petroleum will submit a field development plan next year to kickstart exploration and production activities.

“The Rex Group has been on the lookout for new assets in different regions to mitigate geographical concentration risks, increase group production numbers, and replenish reserves and resources in our current producing assets,” commented Dan Broström, Executive Chairman of Rex International Holding.

The government of Benin will hold a 15% interest in the Block 1 Sèmè Field, while Octogone Trading, a West Africa-focused integrated energy and commodities company, will hold the remaining nine percent.

“We have established a good working relationship with the Benin authorities and our local partner, Octogone Trading, and look forward to cooperating with them in the Block 1 partnership,” added Broström.

Prior drilling in the Sèmè Field in 2014–2015 confirmed deeper hydrocarbon accumulations. Upcoming appraisal tests, along with independent reserve assessments during early production drilling, may reveal additional resources.