Oil and Gas FAQs, Answered Simply
Curious about FPSOs, marginal fields, drilling, reserves or supply in Nigeria? You are in the right place. Here are clear answers from the Encanto team, with the technical terms explained.
About Encanto
What does Encanto Oil & Gas Ltd do?
Encanto Oil & Gas Ltd is a Nigerian energy company. We supply crude oil, petroleum products, natural gas, bitumen and chemicals. We also provide field development, drilling engineering, EPC, pipeline and facility services, plus upstream consulting. In short, we help oil and gas move from the reservoir to the customer.
Where is Encanto based?
Our office is at Block SB3, Flat 16, NNPC Estate, Area 11, Garki, Abuja, FCT, Nigeria. We are happy to discuss work across Nigeria, on land, in the swamp and offshore.
Is Encanto a registered Nigerian company?
Yes. We are a private company limited by shares, registered with the Corporate Affairs Commission under RC 1497180 on 23 May 2018. Our former name was Estrellaluz Negocio Limited, and we took the name Encanto Oil & Gas Ltd in November 2026.
Does Encanto work outside oil and gas?
Yes, although oil and gas come first. We also work in construction, real estate, trading, agriculture, manufacturing, transport, and mining and natural resources. These sectors need the same things: good planning, reliable supply and work done properly.
Oil and Gas Supply
What products can Encanto supply in Nigeria?
We supply crude oil, PMS (petrol), AGO (diesel), DPK (kerosene), ATK (jet fuel), LPFO, pipeline gas, CNG, LPG, LNG, bitumen, solvents, glycols, base oils, oilfield chemicals, drilling fluid materials, urea and NPK fertiliser. Tell us the product and grade, and we will confirm what we can do.
What information do you need for a quote?
Please share the product, grade or specification, quantity, delivery point, delivery date and preferred terms. For crude, include the stream and whether you want FOB or CIF. The more we know, the faster we can give you a useful answer.
How do you check product quality?
Each order is matched to a clear specification before any money moves. For crude we work from the assay, including API gravity, sulphur and pour point. For fuels we check density, flash point and sulphur. Independent inspection of quantity and quality can be arranged at loading.
Which bitumen grades do you supply?
We supply penetration grades 60/70 and 80/100, along with cutback and emulsion products for prime and tack coats. Supply can be in bulk or drums, timed to suit your asphalt plant and paving schedule.
Can you deliver to my site?
Yes. We arrange road and rail haulage, including heavy loads and hazardous cargo. We plan routes and load limits, and we follow journey management rules on every trip, so your product arrives safely and on time.
Field Development and FPSO
What is field development?
Field development is the plan that turns a discovery into a producing asset. It joins the reservoir, the wells, the facilities, the export route, the cost and the schedule into one plan. In Nigeria, this plan is written up as a field development plan (FDP) for the regulator to review.
What is the difference between subsurface and surface development?
Subsurface development covers everything below ground, such as the reservoir model, drive mechanism, well placement and recovery factor. Surface development covers what sits above it, such as wellheads, flowlines, flow stations, separators, compression and export systems. The two must be designed together.
What is a marginal field?
A marginal field is a small or stranded field that a larger operator has not developed, often because it looked too small to be worthwhile. With phased capex, early production facilities (EPFs) and tie backs to nearby hosts, many marginal fields can still make strong returns.
What is an FPSO?
FPSO stands for Floating Production, Storage and Offloading vessel. It is a ship that processes oil from subsea wells, stores it in its hull and offloads it to tankers. Because no long export pipeline is needed, FPSOs are widely used in deepwater fields. Bonga, Agbami, Akpo and Egina in Nigeria all use them.
Can you help with an FPSO decision?
Yes. We can study newbuild or tanker conversion, spread mooring or turret, charter or ownership, and the SURF scope (subsea umbilicals, risers and flowlines). For smaller fields, we can also look at FSOs and redeployed vessels.
Drilling Engineering
What does a drilling engineer do?
A drilling engineer plans how to reach the target safely and at a sensible cost. That covers well design, casing seats, mud weights, cementing, directional planning, well control and the cost estimate known as the AFE. On the rig, the engineer tracks progress against the plan.
What is the mud weight window?
It is the safe range of drilling fluid density between the pore pressure and the fracture gradient. If the mud is too light, formation fluid can enter the well, which is called a kick. If it is too heavy, the rock can fracture and mud is lost. This window sets the casing points.
Which rig suits my well?
It depends on location and well design. Land rigs suit onshore wells, swamp barges work the Niger Delta creeks, jack ups stand in shallow water, and semi submersibles and drillships reach deepwater. We match the rig to the well, and the day rate to the budget.
Why is sand control important in the Niger Delta?
Many Agbada reservoirs are young, loose sands. Without control, sand can flow into the well, damage equipment and choke production. Sand screens, gravel packs and frac packs help to keep the sand out while letting oil and gas flow.
Consulting and Investment
What upstream consulting services do you offer?
We offer bid packages and NUPRC submissions, petroleum economics, asset valuation, field development plans, due diligence, regulatory and local content compliance, fiscal modelling, technical audits, operational improvement, and mergers and acquisitions support.
How do you value an oil and gas asset?
We start with a discounted cash flow, often reported as NPV10, using production forecasts, capex, opex, royalties and taxes. We cross check it against recent deals and benchmarks, such as dollars per 2P barrel. You get a range of values and the assumptions behind them.
What do 1P, 2P and 3P reserves mean?
These are reserve categories under the SPE PRMS system. 1P means proved, 2P means proved plus probable, and 3P means proved, probable and possible. Lenders usually focus on 1P and 2P. Resources that are not yet commercial are called contingent resources.
What is a competent person's report?
A competent person's report (CPR) is an independent review of an asset's reserves and value by a qualified specialist. Investors and lenders often ask for one before funding a project. We can prepare your data and file for that review.
Can you help us raise capital for a field?
Yes. We can build the bankable model, teaser, information memorandum and data room, and look at equity, senior debt, reserve based lending, offtake prepayments and vendor finance. Funding outcomes always depend on the asset and on the investor's own review.
Safety and Regulation
Who regulates oil and gas in Nigeria?
Under the Petroleum Industry Act 2021, NUPRC regulates upstream activity and NMDPRA regulates midstream and downstream activity. NCDMB oversees Nigerian content. NOSDRA deals with oil spills, and the Federal Ministry of Environment handles environmental impact assessments.
What is the Nigerian content requirement?
The Nigerian Oil and Gas Industry Content Development Act requires operators and contractors to give first consideration to Nigerian goods, services and people. Key items include Nigerian Content Plans, reporting to NCDMB and a 1% levy to the Nigerian Content Development Fund on qualifying contracts.
How does Encanto manage safety?
Safety comes before speed on every job. We start with a job safety analysis and a toolbox talk, use permit to work for high risk tasks, and give everyone on site the right to stop the job. Incidents get a root cause review, and the lessons go into the next plan.
Working With Us
How do I start working with Encanto?
Send us your enquiry through the contact form or email info@encantoil.com. Tell us your need, site and budget. We then agree the scope, schedule and price with you, and start work once you are happy with the plan.
Will you sign a nondisclosure agreement?
Yes. We are happy to sign one before you share data. If you have a data room, teaser or tender document, tell us and we will arrange a secure way to review it.
Can I use just one service?
Of course. Every service can stand alone, whether it is a single supply order, a technical audit or a drilling review. You can also combine services under one contract, and keep a single point of contact.