BusinessDay

Nigeria hopeful of improved oil output as Heirs Holdings begins work on OML 17

Nigeria’s daily crude oil production is optimistic of improving output as Heirs Holdings Oil and Gas, a subsidiary of Heirs Holdings, plans to commence work on the Oil Mining License (OML 17) field.

With this development, Heirs Holdings intends to reduce flaring, increase power generation by issuing a tender for work on the Elelenwa multiphase pump gathering station of the oil field.

The indigenous oil and gas firm also believed, “OML 17 will drive an integrated energy strategy to deliver the benefits of meeting energy demands while improving labour productivity in the country.”

In addition, the oil field plans to create new job opportunities and further expand more business prospects for new bidders.

“The company requires interested bidders to be pre-qualified in the Nigerian Petroleum Exchange (NipeX) joint qualification system database. They must also submit details on how they will comply with local content requirements. Bids must include commercial and technical tenders at the same time,” the company said in a statement seen by BusinessDay.

The above development comes a year after the company’s acquisition of 45 per cent stake from Shell Petroleum Development Company (SPDC), Total E&P and Eni. in an Oil Mining Lease (OML) 17 while the Nigerian National Petroleum Corporation (NNPC) holds the remaining 55 percent.

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OML 17 is a large onshore license that includes the northern half of Port Harcourt, the Niger Delta’s largest city. It extends northward from the low-lying swamp into drier terrain with easier operating conditions. On OML 17, there are 15 oil and gas fields, and only four of these are producing.

In addition, OML 17 now produces 30,000 barrels of oil equivalent per day. It has a total of proven and probable reserves (2P reserves) of 1.2 billion barrels of oil equivalent (boe) and an additional 1 billion boe of exploration potential.

Furthermore, Heirs Holding has stated that infrastructure in the area could allow for the production of 200,000 barrels per day (bpd) of oil and 300 million cubic feet per day (mcfd) of gas.

While describing the nature of the work expected at the new oilfield, the company indicated that the contractor will carry out the work under an Engineering, Procurement, Installation and Commissioning (EPIC) contract.

It was also stated that the scope of work includes the installation of a pump gathering station to collect well fluids from the Elelenwa West manifold and transport them to the Agbada-1 flow station for processing. The Agbada field is located in the license’s center, while Elelenwa is located in the license’s south, near Port Harcourt.

In furtherance, the scope will also include a mini front-end engineering and design (FEED) and a detailed engineering design. The work will include creating a schedule, conducting site surveys, and generating power.

The suppliers will also provide operational spares for two years, deliver the pump and other facilities to the site, perform performance testing, and finally hand over, according to the company.

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