“Operations at the Aje field continued largely uninterrupted by COVID-19 and costs were significantly reduced at the asset level, bringing break-even costs down to US$28 per barrel, which ensures the asset remains profitable even at lower oil prices,” said Osamede Okhomina, ADM chief executive.
"By storing oil on the FPSO, we have avoided making sales at depressed prices and are now positioned to benefit from any potential increased forward curve in oil prices as the global economy begins to re-open.”
ADM increased its stake in the asset during the period and Okhomina highlighted that the company is excited by the upcoming prospects for the field.
Three new wells are planned in 2021, he noted, which is significantly expected to increase the field’s production significantly to around 9,000 barrels of oil per day.
The Aje field, now 9% owned by ADM, produced at an average rate of 2,126 bopd, which is 106 bopd net to ADM. Total gross production tallied 394,812 barrels, 24,941 net to ADM.
Following a period without sales, the next crude lifting is anticipated in October.
ADM recently moved to expand its footprint in Nigeria with an application in the country’s licensing round.
Elsewhere, ADM entered into a strategic alliance tie-up with Trafigura with the aim of developing African energy projects. The commodity trading group puts in place conditional pre-finance of up to US$100mln.
"We continue to drive forward our strategy to build a multi-asset portfolio by targeting projects with highly attractive risk-reward profiles,” Okhomina added.
“As oil majors continue to look to divest assets, the current economic climate has further depressed their value but not their quality, which presents attractive investment opportunities.
“With a strengthened management team and Board, extensive contacts and experience in West Africa, ADM is well positioned to execute its growth strategy and capture the significant opportunities that exist in the near to medium term."
ADM reported a £975,000 loss for the six-month period.