NNPC to invest $5.2bn on acquired IOC assets

NNPC-Towers…To increases oil output to 160,000bpd  

Yemie Adeoye 04 April 2014, Sweetcrude, Lagos – In an effort to significantly raise its oil output, the Nigerian National Petroleum Corporation, NNPC, through its subsidiary, the Nigerian Petroleum Development Company, NPDC, has concluded plans to invest about 5.2 billion US dollars on its oil assets acquired from International Oil Companies, IOC’s, over the next four years.

The company is also planning to increase its output on Oil Mining Lease, OML 42 by an additional 30,000 bpd, while also working to grow its total production output to a total of 160,000 bopd.

The plan to be realised in the coming years is expected to increase the total output of the OML from the present 30,500 bpd to over 60,000bpd.

The NPDC took over the operatorship of OML 42 assets from Shell Petroleum in January 2012 when the station was producing 25,500 barrels per day, bpd from 11 strings.

The firm which made this known in a recent presentation stated, “Six months after successful takeover of operatorship, NPDC raised the production level to 30,500 bpd (13,800bpd net) from 13 strings. This milestone production was unprecedented in the history of Batan production even when SPDC was operating.

NPDC stated that the key achievements on OML 42 since the takeover of operatorship included the accomplishment of a zero lost time incidence.

It stated that the milestones included concluded engagements with the host communities in OML 42 for Freedom to Operate (FTO) and another engagement of operations and maintenance contractor for Batan flow station.

The firm stated that they also included putting in place over 40 service contracts for the sustenance of Batan Flow station operations and the SPDC contract for the rehabilitation of Oil and Gas Facilities and Installation of Power generation facilities at Odidi Node by Lee Engineering and Construction Company.

It stated the repair of Ajuju 1S flowline to secure about 1,200bopd crude oil production, repair of Ajuju 6T flowline to secure about 1500bpd crude oil production and sustained Batan Flowstation production at about 30,500blpd (13,800bpd) from 13 strings.

The firm also listed the hook up of Batan Flowstation Houseboat to the flowstation Gas Generator to reduce diesel consumption by 500litres per day as its another accomplishment.

It stated, “The next phase will be opportunity maturation through the commencement of Odidi and Jones creek Re-entry Projects.

The firm stated, “These projects have several modules in phases with Phase 1 geared towards additional 30,000 bpd and 45mmscfd gas from Odidi field and about 48,000bpd production increase from Jones creek.”

The investment is said to be part of a $5.2 billion, four-year investment plan aimed at raising oil production to 300,000 b/d mainly from assets acquired from foreign oil companies including Shell.

The Managing Director Mr. Victor Briggs stated, “The investment plan will kick off with capital expenditure of $1.8 billion this year, which we expect will increase production from 140,000 barrels per day now to 160,000 b/d by end of this year, and to deliver 600,000 Mcf/d of gas by year-end.

NPDC has bolstered its production and increased reserves to around 2.1 billion barrels after taking over operatorship of six onshore oil wells sold off by Shell, Total and Eni, including OML 30, which recorded output of 35,700 b/d at the end of last year.


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