*First oil expected by year-end
Peter Uzoho
The Nigerian National Petroleum Company (NNPC) through its upstream subsidiary, the National Petroleum Development Company (NPDC) and Natural Oilfield Services Limited (NOSL), an indigenous operator, would commence exploration work on the Oil Mining Lease (OML) 13 by end of 2022.
In a statement yesterday, the partners disclosed that the first oil from the asset would be achieved by the end of 2022.
OML 13 is a large block in Akwa Ibom State, Nigeria’s oil rich Niger Delta and is reported to hold in-place volumes of over 900 million barrels of oil and 5 trillion cubic (tcf) of gas.
The Managing Director of NOSL, Dr. Anthony Chukwueke, was quoted to have disclosed this on Friday, during an inspection of the exploration site in company of the Managing Director of NPDC, Ali Zarah; Governor of Akwa Ibom State, Mr. Udom Emmanuel, and Managing Director, Sterling Oil Exploration and Energy Production Company (SEEPCO) Limited, Mr. Mohit Barot, amongst others.
The exploration on the asset is coming nearly three years after the signing of the Financing and Technical Services Agreement between NNPC and SEEPCO for the development of OML 13.
The agreement with SEEPCO was for a period of 15 years while the $3.15 billion ceiling funding would be provided by SEEPCO with a 10-year capital investment period and five years for cost recovery, according to the Group Managing Director of NNPC, Mallam Mele Kyari.
Kyari had explained then that the deal was intended to help boost the nation’s crude oil reserves and daily oil production to 3 million barrels per day (bpd)
He said the acreage had over 926 million stock tank barrels (mmstb) and 5.24 tcf of oil and gas reserves, respectively, adding that first oil of about 7,900 bpd was expected from the project by the second quarter (Q2) of 2020, while production was expected to peak at 94,000 bpd and 542 Mmscf/d within four years.
However, stakeholders at the inspection of the exploration site, said the exploration had dawned a new sunshine in boosting the economy of the state and the nation.
According to them, the latest development opened a gateway of opportunities in the Nigerian oil and gas industry to the local communities by significantly unlocking employment opportunities, empowerment and development projects, as well as creating a great growth milestone for the state and a breakthrough for the host Local Government Areas (LGAs).
Speaking during the inspection at Atabrikang Fields, Eastern Obolo LGA, Chukwueke said OML 13 was determined to play its role in the oil and gas industry in Nigeria.
The NOSL boss stated that the company and its partners have plans to optimise the by-products of oil including petrochemical, fertilizers and polymers plants in future.
He explained that in the long run, such endeavours would minimise the import dependency of the country, save forex exchange and increase earnings by exporting the products to different parts of the world.
According to Chukwueke, “This project will help in utilising the resources of the country to bring maximum benefits for one and all. As a pioneer in the Oil business, NPDC is well saddled in the path to make it happen and working relentlessly with Technical & Administrative support of NOSL in one of its biggest onshore oil blocks (OML-13) in the state as well as the nation.
“On successful production of the Oil Block the energy requirement of the state will meet substantially and in creating more jobs for Akwa Ibomites.”
The Chief Executive Officer, SEEPCO, Mr. Mohit Barot, said the company was targeting to hit the first oil by end of this year, explaining that they were currently in the advanced stages in the completion of the onshore facilities for processing and storage of oil.
“We are currently in the advanced stages of completing the onshore facilities for processing and storage of oil. We will have the first oil by end of 2022.
“We are here for the development and betterment of Akwa Ibomites but for these, we need a conducive environment that provides opportunity to succeed,” Barot said.
Managing Director, NPDC, Ali Zarah, thanked Akwa Ibom State Government for a peaceful atmosphere to operate as a company and assured of the company’s readiness to bring development to the community as well as mutual benefits for all.
On his part, the Akwa Ibom Governor, Mr. Udom Emmanuel, expressed satisfaction with the pace of work going on at the project site.
