A Review of the Nigerian Energy Industry

Chevron, ExxonMobil confirm first production from Usan deepwater field

25 February 2012, Sweetcrude, HOUSTON – Chevron Corporation and ExxonMobil Incorporated, partners in the development of Nigeria’s Usan field, through their Nigerian subsidiaries, Friday confirmed first production from the deepwater offshore Usan project in Nigeria.

It is a confirmation of Sweeetcrude report early Friday that production has commenced from the 180,000 barrels per day Usan Floating Production, Storage and Offloading (FPSO) vessel.

Chevron’s Vice Chairman, George Kirkland, said in a statement issued from the company’s headquarters in San Ramon, California that Usan represents an important milestone in progressing Chevron’s queue of major capital projects.

He said the project demonstrates the company’s growth in West Africa , which is a leading global resource basin.

In a statement from its headquarters in Irving, Texas, Neil Duffin, president, ExxonMobil Development Company, said: “This project represents another major achievement of the industry and Nigerians working together to develop the country’s resources.

“Usan is providing significant benefits including revenues, employment and opportunities for local suppliers.”

Discovered in 2002, the Usan field is located approximately 62 miles (100 kilometres) off the coast of the Niger Delta in water depths of about 2,400 feet (750 meters).

The project will utilise a floating production, storage and offloading (FPSO) vessel with a storage capacity
of two million barrels of oil and a maximum total daily production capacity of 180,000 barrels of crude oil.

Associated gas will be re-injected in the reservoir.

Partners in the Usan project include Chevron Petroleum Nigeria Limited (30 percent), Total E&P Nigeria Limited (20 percent and operator), Esso E&P Nigeria (Offshore East) Limited (30 percent) and Nexen Petroleum Nigeria Limited (20 percent).

Chevron said Usan is its second deepwater project in Nigeria . The Agbami project achieved first oil in 2008 and is currently producing approximately 240,000 barrels of crude oil per day. Chevron holds a 67.3 percent interest and operates the Agbami project.

Located in Nigreria’s OML 138, Usan field is also Total Nigeria’s second deepwater development in Nigeria.

Forty-two wells are connected to the two million barrels storage FPSO by a 70-kilometre subsea network.

Yves-Louis Darricarrère, Total’s exploration and production president, said the development was notable for its above-average use of local manpower.

More than 500,000 engineering man-hours and 14 million construction and installation man-hours were performed in Nigeria for the project, a rate of 60% overall.

Total already operates the Akpo field in OML 130 and is also preparing to develop the Egina field in the same lease, in addition to a number of non-operated venture stakes in other developments.

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