Nigeria's Nestoil Deploys Rig for Production Increase with $28 Million Investment

en.Wedoany.com Reported - Nigerian oil and gas company Nestoil has deployed the Pathfinder 500 rig to OML 42 in the Niger Delta and completed workover operations on two production wells. Nestoil confirmed that the operations were carried out by its drilling subsidiary, Scorpio Drilling International, and that both wells have been successfully worked over and restored to production, adding new crude output to OML 42.

The Pathfinder 500 is not a standalone rig worth $28 million. Nestoil has previously invested a cumulative total of approximately $28 million in acquiring two rigs, namely the Pathfinder 500 and the Scorpio 300. The Pathfinder 500 has now completed mobilization, workover of two production wells, and demobilization, marking the first time the equipment has been put into actual production operations since it was acquired by Nestoil approximately eight years ago.

OML 42 is located in the Niger Delta of Nigeria. Nestoil holds a 45% interest in the block through Neconde Energy, while the Nigerian National Petroleum Corporation holds the remaining 55% interest. The block covers an area of approximately 814 square kilometers and contains seven fields with existing oil and gas production records as well as five undeveloped discoveries. Current 2P reserves stand at approximately 600 million barrels of oil equivalent.

Following the completion of the current two-well workover campaign, Nestoil plans to continue advancing more workovers, reactivation of mature wells, and drilling of new wells within OML 42. Neconde has previously proposed gradually increasing production from the asset to approximately 120,000 barrels per day, and subsequent new drilling and existing well restoration will continue to align with this development plan.

From refurbishment and staffing to field deployment, the Pathfinder 500 was handled entirely by the Nigerian team and operated by a 100% Nigerian workforce. Nestoil officially confirmed that the operations on both wells have been completed, with no health, safety, or environmental incidents recorded during the workover period.