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The Nigerian Agip Exploration Limited (NAE) – a subsidiary of the Italian oil giant, Eni – will commence, this month, the process of inviting bids for the development of its $13.5 billion Zabazaba deepwater project, according to a statement released on Sunday by Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB).

Wabote said the invitation for bids by Agip comes after the finalisation of an expedited technical evaluation for the main packages of the project by the NCDMB and NAE, with the aim of maximising local content and increasing crude oil production in Nigeria. The various packages of the project include the Floating, Production, Storage, and Offloading (FPSO) units; subsea installations and rigs.

The Zabazaba deepwater is a greenfield offshore licence block located in OPL 245 in the eastern part of the Niger Delta with water depths ranging from 1,200 to 2,400 metres. The acreage has proven reserves of 560 million barrels of crude oil. The OPL 245, which has been a subject of legal disputes in Nigeria and across some European countries, is jointly owned by Royal Dutch Shell and Eni.

Wabote urged all interested contractors to submit reasonable commercial bids that reflect current crude oil prices, citing the Zabazaba project as the only project nationwide to have reached execution stage in recent times.

The Vice Chairman of NAE, Insulla Massimo, acknowledged the NCDMB and NAE teams for concluding the technical evaluation in record time. He advised other regulatory agencies to adopt the NCDMB’s evaluation model for tenders and other processes.

The NAE plans to achieve first oil production at the Zabazaba field in 2020 and is set to make final investment decisions in the second quarter of this year. Execution of the project is expected to commence by the third quarter of 2017.