RE:RE:RE:RE:Prime Answer on decline from my AOI Swedish FB page:
"There were infill drilling and satellite tiebacks that could have come on stream earlier but some of it were I guess delayed by Covid and also I suppose waiting for the new tax regime, now signed, that will improve the investment case for offshore projects with much lower tax (less 20% tax but plus royalties) However royalty "holidays" for new fields, possibly up to five years, applies to Preowei and others still to come on stream. Also a reason I guess was license renewal, especially in OML 130 so this all conributed to later approval and later appraisal drilling and made decline more obvious but that will improve with the same oil pumped later at better netback.
OML 130 – Preowei Discovery expected to begin in 2024. It is to be developed via Egina FPSO. Preowei Discovery is a major discovery with STOIIP in excess of 700 MMbbl (expected to recover 204 MMbbl oil +gas. Preowei is one of the largest undeveloped oil discoveries offshore Nigeria just waiting there to come om stream with two wells already drilled and appraisal drilling probably soon underway. AOI said that with the capital investment they are hoping to arrest decline and even in some fields actually raise production.
Preowei will add up to 65000 bpd of crude oil/condensate and 20 Mmcfd of natural gas. Petroleum Profit Tax (50% rate) eliminated and replaced by Corporate Income Tax (30% rate) – offsets the introduction of deepwater royalties"