A Review of the Nigerian Energy Industry

Energia targets 10,000bpd production by 2013

Clara Nwachukwu

06 November 2012, Sweetcrude, LAGOS – AN indigenous Nigerian marginal field, MF, producer, Energia Limited, says it will increase oil production from its Oil Mining Lease, OML 56, to 10,000 barrels per day, bpd, by 2013. Current capacity from the block is put at 5,000 bpd, but this is expected to inch higher to 7,000bpd by mid-December.

The company is optimistic that achieving the 10,000bpd will launch it into an independent producer, and big enough to bid for additional blocks during the next licensing rounds that will be conducted in the country.

Managing Director/Chief Executive of Energia, Mr. Felix Ofori, speaking on the company’s field development plans, said, “We are happy to announce our successful drilling and completion of our Ebendo Well 4 that tested 3000bpd in August 2012. This brought our field producibility to some 5000bpd.

“We also wish to announce that we are presently drilling a second development well, Ebendo Well 5, top develop additional reservoirs found in Well 4, which we expect should be completed by mid-December 2012. This well is expected to bring our field total producibility to some 7000 bpd.

“Shortly after Well 5, the rig will be moving to our Well 6 in December 2012. Well 6 is targeted at some shallower reservoir. All of these are in line with our field development plan to bring our total field production to average at 10,000 bpd in 2013.”

He expressed confidence in the company’s ability as an independent operator, saying that with its strong technical backup and prudent operations, its revenue profile from current productions at 4,000 bpd is about $10m monthly, adding that this has put it in a strong stead to bid for an oil block.

Ofori recalled that the company, which is in joint venture with Oando, has been producing from its Well 1 for nearly two years without water production, as is commonly experienced with other MF operators. He said the company discovered about 300 feet of net hydrocarbon sand, which significantly increased its reserves base from 6 million barrels, mmbls, to 30 mmbls.

Attributing the success to prudent reservoir management policy, he also explained that on the commissioning of Well 6, Energia planned to carry out some evaluation that will enable it drill subsequent well in the field in the 2013 work programme period.

Operational challenges
He noted that although the company had planned to achieve the 10,000bpd in this financial year, it was challenged by the acquisition of land rig to execute the job. “The challenges we had in our 2011/2012 period was securing a suitable land drilling rig, which we eventually did in October 2011, with ACME Energy Integrated Services.”

He added that the rig, which was brought in from Houston Texas, USA, cost the company about $5million to bring it down to its location, aside from the cost of getting the rig fit for purpose, which took about six months to achieve.

Apart from the rig, Ofori further disclosed that the company is also faced with crude evacuation challenges through the Nigerian Agip Oil Company, NAOC’s Brass Terminal, which cannot accommodate the additional combined production of 25,000bpd from the MF Cluster of seven producers as well as its own production.

To overcome the challenge, the Energia boss disclosed that the company has entered into a joint venture with Midwestern Oil and Gas, a member of the Cluster to construct an alternative 53-kilometer, 12-inch export pipeline that will run from the Umusade Field to Eriemu Manifold.

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