Nigeria’s independent oil firms’ wellheads remain inactive

*A child staring at an abandoned oil well head leaking crude oil in Kegbara Dere community.

*A child staring at an abandoned oil well head leaking crude oil in Kegbara Dere community.

02 September 2016, Lagos – Well heads of some Nigeria’s independents and sole risk oil and gas firms in Nigeria have not produced and have remained inactive since February when militancy escalated in the Niger Delta region.

For instance, wellheads of Seplat Petroleum Development Company, First Hydrocarbon, Shoreline, ND Western, Elcrest and Naconde have been idle in the last seven months.

According to data contained in Nigerian National Petroleum Corporation (NNPC) report, Consolidated Oil wellhead was last active since June 2015.

Atlas has not done anything in its wellhead since January last year.

This has however reduced their contributions to the country’s crude oil production from the 6.6 million barrels it recorded in January to 2.2 million barrels.

Giving a breakdown of the contribution of different streams to the country’s national production capacity, NNPC disclosed that a total of 52.34 million barrels of crude oil and condensate was produced in the month of May 2016 representing an average daily production of 1.69 million barrels.

It explained that this represents a decrease of 12.12 per cent compared to April 2016 performance. “Of the May 2016 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 27.6 per cent and 52.29 per cent respectively. While AF, NPDC and Independent accounted for 12.82 per cent, 2.23 per cent and 5.03 per cent respectively,” it added.

Comparing NPDC performance to national production, the company production amounted to 2.23 per cent.

It disclosed that NPDC projected production continued to be hampered by the incessant pipeline vandalism in the Niger-Delta, adding that NPDC is projected to ramp-up production level to 250,000 barrels per day after the completion of the on-going NPDC re-kitting project and repairs of vandalised facilities.

NNPC hinted that production from NPDC wholly operated assets amounted to 10,382,016 barrels with Okono Okpoho alone producing 82.74 per cent of the NPDC wholly owned operated assets of 27.91 per cent of the total NPDC total interest, crude oil production amounted to 11,570,117 barrels.



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