Erin Energy in its operation update announced that its Oyo field in Nigeria has witnessed a boost in production and an increase in income for Q1 of 2016.

At the beginning of May, the company announced that it had been able to resume oil flow from the Oyo-8 well which had halted flow as a result of a technical fault on the sub-surface controlled sub-surface safety valve (SCSSV).

The Island Offshore had been tasked with the responsibility of carrying out the intervention work, with their Light Well Intervention (LWI) vessel, the Island Constructor.

The successful outcome of the well intervention work, has made the company to plan further activities on the Oyo field so as to further boost output and at the same time, reduce unit operating cost for the asset.

The Oyo field now produces 10,380 boepd.

“The excellent planning and execution of the Oyo-8 subsea intervention has further strengthened our confidence in our ability to execute complex deepwater operations and also speaks to the experience and quality of our operational and technical teams,” Kase Lawal, Erin’s CEO said.

He added that in Q1 the company witnessed $4.9 million in revenue, compared to the zero in Q1 of 2015.

“With the reopening of Oyo-8 and the success we have achieved in our cost reduction efforts, we are now better positioned to achieve financial stability in our operations,” he told Offshore Post.

Erin Energy is currently in talks as regards drilling rig contracts, long-lead production equipment, as well as a 20% reduction in operating and capital expenses.

The company currently has nine licences across four countries which includes current production and other exploration projects offshore Nigeria, exploration licences offshore Ghana, Kenya and Gambia as well as onshore Kenya.

Anita Fatunji