Nigeria’s state oil company said on June 29 it had agreed to a joint venture to cover the more than $700 million cost of developing new oil fields in its southern Niger Delta energy hub.
The Nigerian National Petroleum Corp. (NNPC) said it had a tripartite agreement with local energy firm First Exploration and Petroleum Development Co. and international oil services company Schlumberger Ltd. (NYSE: SLB) to develop the Anyala and Madu fields under oil mining licenses (OML) 83 and 85.
The OPEC-member state has been seeking investment to increase its crude oil reserves to 40 billion barrels (Bbbl) by the year 2020, up from the current proven reserves of 37.2 Bbbl.
NNPC, in an emailed statement, said under the agreement Schlumberger would provide the $700 million investment in developing the fields, which would add 193 million barrels of crude to current reserves.
The state oil company said it would also add 800 billion cubic feet of gas to Nigeria’s proven gas reserves. Nigeria has the world’s ninth largest gas reserves, at 187 trillion cubic feet.
“In terms of daily production, the fields will yield 50,000 barrels of crude oil per day and 120 million standard cubic feet of gas per day by early 2019,” NNPC spokesman Ndu Ughamadu said in the statement.
The state oil company said OMLs 83 and 85 were located in shallow waters 40 km (25 miles) offshore.
NNPC said it held a 60% interest in the licenses, while First Exploration and Petroleum Development Co., operator of the joint venture, held the remaining 40%.
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Remotely Controlled Well Completion Carried Out at SNEPCo’s Bonga Field
2024-02-27 - Optime Subsea, which supplied the operation’s remotely operated controls system, says its technology reduces equipment from transportation lists and reduces operation time.
E&P Highlights: March 11, 2024
2024-03-11 - Here’s a roundup of the latest E&P headlines, including a new bid round offshore Bangladesh and new contract awards.
Deepwater Roundup 2024: Offshore Africa
2024-04-02 - Offshore Africa, new projects are progressing, with a number of high-reserve offshore developments being planned in countries not typically known for deepwater activity, such as Phase 2 of the Baleine project on the Ivory Coast.