Nigeria’s oil production is to receive a boost as Green Energy, (GEIL), operators of Otakikpo Marginal Field in OML 11, is set to increase production to 25,000 barrels per day.
According to Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s oil production averaged 1,014,485 barrels of oil per day in October. Lower than the 1.8 million bpd production quota set by the Organisation of Petroleum Exporting Countries (OPEC).
Despite the imbalances in the demand and supply of gas due to the lack of in-country capacity, GEIL disclosed that all is set for the commissioning of a 12MMSCFD modular LPG extraction plant and a 6MW power generating plant by the end of Q4 2022.
Speaking during the company’s exhibition and end-of-the-year party in Abuja, chairman of the GEIL, Anthony Adegbuluge, said the Otakikpo phase 2 campaign was aimed at increasing the field’s production and providing a platform for future development by drilling two additional wells.
“The critical objectives for the campaign were to deliver reliable and fully functional well, meet geological and production objectives as well as achieve incident-free operations.
“Despite that there had not been any drilling activity on the field over the past 36 years, we collaborated with our selected turnkey well delivery service partners (Geoplex and Baker) and established that implementing an integrated turnkey contractual and project management execution strategy could be a game-clincher to mitigating against the well-documented well delivery challenges encountered by small to midsize indigenous operators in the Niger Delta.
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“We have also developed very aggressive plans to considerably increase production from the field with the potential to spend up to $750m within three years.
“These consistent spectacular demonstrations of outstanding ability to turn obstacles into opportunities and problems into possibilities is borne out of a deep-rooted corporate character that sees challenges as guidelines and not stop signs,” he said.
Speaking further, Adegbuluge noted that the firm has achieved 100 percent local content, as the operations are fully handled by Nigerians.
According to him, the firm was the first exploration and production company to transition to the Petroleum Industry Act by fulfilling all requirements to securing the Host Community Development Trust (HCDT) approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
He also disclosed that the company has begun the development of an onshore terminal and export infrastructure at the Otakikpo project.
“We plan to make the Otakikpo field a crude processing and export hub by providing access to fit-for-purpose evacuation and export infrastructure for the several stranded fields in the eastern Niger delta area.
“There are over 20 stranded fields in close proximity to the terminal that will benefit from the enhanced access to readily accessible and cost-effective route to the market,” he said.
