A Review of the Nigerian Energy Industry

Ofon 2: Total expects first oil in Q3 2015

FRANCE TOTAL UTS ENERGY04 June 2014, Lagos – Nigerian unit of French oil company, Total E & P Nigeria, said it expects to pump first oil from its Ofon 2 project before the end of the third quarter of next year. 

If target is met, about 40,000 barrels per day, bpd, will be added to Nigeria’s current daily production, which levels had dropped in the recent time on account of sabotage.

Total made this known during a tour of the facility organised for journalists to demonstrate the progress made so far on the offshore block located in Oil Mining Lease, OML 102.

Furthermore, the company expects to end current gas flaring from the field by December, when the gas would be harnessed for export through its Amenam Kpono field to the NLNG Plant in Bonny.

Gas flaring has remained a recurring issue in Nigeria’s petroleum activities in view of the attendant environmental hazards. About 10 percent of Nigeria’s total gas production of 3.5 billion cubic feet, bcf, is currently being flared, according to the Nigerian National Petroleum Corporation, NNPC, which owns 60 percent equity in Ofon 2.

The Project Manager of Ofon 2, Mr. Emmanuel Hyest, in company of other top managers of the project conducted journalists round the facility, which he said is now more than 83% completed.

Hyest’s pronouncement lends credence to an earlier one made recently in Paris, France by Total’s Chief Executive Officer, Mr. Christophe de Margerie, who expects the project managers to deliver “Ofon Phase 2 in Nigeria in the second half of the year.”

This is particularly so as almost all the remaining parts of the project are now being executed simultaneously in order to meet targets.

Objectives of Ofon 2

Hyest told the journalists, “Ofon 2 has three major objectives; first is to stop gas flaring; monetise the gas by piping it to the NLNG plant viaAmenam field; and lastly, develop additional reserves while producing the remaining Phase 1 reserves.”

He added, “When completed, about 106 million standard cubic feet, scf, of gas per day will be sent to the domestic gas market thereby boosting the government’s aspirations on power.”

Hyest explained further that Ofon 2, which is about four times the size of Ofon 1,has the capacity to produce in excess 350million barrels of oil equivalent, boe, including oil, gas and condensates.
He disclosed that there are about 24 development wells, 16 of which are producers and the remaining eight injectors.
He also said that upon completion, “Ofon 2 will form the hub of production for future development in OML 102 such as: Etisong, Eben (Obongawan), Emem, Uyai, Ofon South, and Ofon North East.” According to him these fields hold additional reserves prospects of over 250 million boe.
Costs escalation Justifying the steep rise in the overall cost of the project delivery, Total cited inflation, approval delays, contractors’ delays, and Nigerian content as being responsible.

Recall that Vanguard had exclusively reported a whopping 132.6 percent rise in the cost of the project from an initial $2.85billion to proposed $6.63billion.

The Ofon Field Development Project Phase 2 was launched in 2007, to enhance production from the mature Ofon field. Nigerian unit of French oil company, Total E & P Nigeria, said it expects to pump first oil from its Ofon 2 project before the end of the third quarter of next year.

If target is met, about 40,000 barrels per day, bpd, will be added to Nigeria’s current daily production, which levels had dropped in the recent time on account of sabotage.

Total made this known during a tour of the facility organised for journalists to demonstrate the progress made so far on the offshore block located in Oil Mining Lease, OML 102.
Furthermore, the company expects to end current gas flaring from the field by December, when the gas would be harnessed for export through its Amenam Kpono field to the NLNG Plant in Bonny.
Gas flaring has remained a recurring issue in Nigeria’s petroleum activities in view of the attendant environmental hazards. About 10 percent of Nigeria’s total gas production of 3.5 billion cubic feet, bcf, is currently being flared, according to the Nigerian National Petroleum Corporation, NNPC, which owns 60 percent equity in Ofon 2.
The Project Manager of Ofon 2, Mr. Emmanuel Hyest, in company of other top managers of the project conducted journalists round the facility, which he said is now more than 83% completed.

Hyest’s pronouncement lends credence to an earlier one made recently in Paris, France by Total’s Chief Executive Officer, Mr. Christophe de Margerie, who expects the project managers to deliver “Ofon Phase 2 in Nigeria in the second half of the year.”

This is particularly so as almost all the remaining parts of the project are now being executed simultaneously in order to meet targets.

Objectives of Ofon 2

Hyest told the journalists, “Ofon 2 has three major objectives; first is to stop gas flaring; monetise the gas by piping it to the NLNG plant viaAmenam field; and lastly, develop additional reserves while producing the remaining Phase 1 reserves.”

He added, “When completed, about 106 million standard cubic feet, scf, of gas per day will be sent to the domestic gas market thereby boosting the government’s aspirations on power.”

Hyest explained further that Ofon 2, which is about four times the size of Ofon 1,has the capacity to produce in excess 350million barrels of oil equivalent, boe, including oil, gas and condensates.

He disclosed that there are about 24 development wells, 16 of which are producers and the remaining eight injectors.

He also said that upon completion, “Ofon 2 will form the hub of production for future development in OML 102 such as: Etisong, Eben (Obongawan), Emem, Uyai, Ofon South, and Ofon North East.” According to him these fields hold additional reserves prospects of over 250 million boe.

Costs escalation Justifying the steep rise in the overall cost of the project delivery, Total cited inflation, approval delays, contractors’ delays, and Nigerian content as being responsible.

Recall that Vanguard had exclusively reported a whopping 132.6 percent rise in the cost of the project from an initial $2.85billion to proposed $6.63billion.

The Ofon Field Development Project Phase 2 was launched in 2007, to enhance production from the mature Ofon field.

– Vanguard

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