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Valuing ExxonMobil's Owowo discovery in deepwater Nigeria

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Report summary

In October 2016 ExxonMobil announced that its Owowo deepwater discovery could hold 500 million to 1 billion barrels of recoverable resource. Owowo is located near to the producing Usan field which is also operated by ExxonMobil. A tie back to the Usan FPSO could allow early production with a leased FPSO a possibility for a later phase. The fiscal terms are similar to the 2005 PSC the toughest of the deepwater era while Nigeria's high costs are supported by local content. Does Owowo work with these disadvantages? Our Global Economic Model (GEM) shows that it needs to be at the upper end of the reserves scale to deliver attractive returns. However every 1% of cost savings could realise 1.6% of extra value so there is a clear incentive to reduce costs. Report includes production capital cost and operating cost profiles and cash flows. Metrics such as IRR Breakeven Brent price and Government take are also provided.

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    Valuing ExxonMobil's Owowo discovery in deepwater Nigeria

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Table of contents

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Tables and charts

This report includes 8 images and tables including:

Images

  • Owowo discovery and surrounding acreage
  • Summary economics for full-field Owowo development (high & low case reserves)
  • Production, cost & cash flow profiles (500 mmbbls)
  • Production, cost & cash flow profiles (1 bn bbls leased FPSO)
  • Summary economics: Phase 1 (high & low case)
  • Summary economics: Phase 2 (high & low case)

Tables

  • Participation in Owowo and Usan acreage (%)
  • Valuing ExxonMobil's Owowo discovery in deepwater Nigeria: Table 2

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