A worker inspect facilities on an upstream oil drilling platform at the Total oil platform at Amenem, 35 kilometers away from Port Harcourt in the Niger Delta. Amenem is the hub of Total oil production with two oil well producing over 100,000 barrels of crude daily. AFP PHOTO / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP/Getty Images)
HighlightOil & Gas

NNPC Inches Towards 40 billion barrels oil Reserve Target

544

…As NNPC/FIRST JV Secures over $700 million Schlumberger Funding for New Fields

Per Second News—-

The Nigerian National Petroleum Corporation, NNPC, has inched closer to its 40 billion barrels oil reserve target by the year 2020 on Thursday with the execution of a tripartite agreement in Abuja.

Corporation’s spokesperson NDU UGHAMADU, announced an agreement between the NNPC/FIRST Exploration & Production Joint Venture and Schlumberger for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licence, OML 83 and OML 85, offshore Nigeria.

Under the agreement, Schlumberger would provide the over $700 million development cost of the Anyala and Madu fields which would generate 193 million barrels of crude oil into the current reserves of 37.2billion barrels and an additional 800 billion cubic feet of gas into the nation’s proven gas reserves which currently stand at 197 Trillion Cubic feet of gas .

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.

Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, said the innovative approach to funding JV operations in response to the challenging economic environment was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetization of the nation’s enormous gas resources.

He added that apart from serving as a test case for future funding mechanism, the approach adopted was in sync with the realization of the corporation’s 12 Business Focus Areas (BUFA) which is to ramp up crude oil production and reserves growth, amongst others.

He said the projected increase in production of gas would come in handy as the Corporation strived to sustain the supply of gas to the existing power plants as well as the planned power projects billed to come on board within the period.
Managing Director and CEO, FIRST E&P, Ademola Adeyemi-Bero, who signed on behalf of FIRST E&P, remarked that the partnership between the NNPC/FIRST E&P JV and Schlumberger would infuse a novel asset development model which combines FIRST E&P’s local knowledge and market position as an indigenous operating company, with Schlumberger’s financing and broad technical capabilities.

He added that the joint project team would strengthen FIRST E&P’s project delivery abilities and the model would offer the Upstream subsector a credible alternative funding and technical partnership model for growing production and adding reserves.

On his part, Patrick Schorn, Vice President, Schlumberger, who signed on behalf of Schlumberger traced the advent of the multi-national oil fields service company in Nigeria to the first commercial oil find in Oloibiri when Schlumberger played a role in Shell’s drilling effort.
He noted that the partnership with NNPC and FIRST E&P would provide Schlumberger the opportunity to leverage on its reservoir knowledge, oilfield services and project management expertise to lower development costs and maximize value for the partners.

The OMLs 83& 85 are located in shallow waters 40 km offshore in the Niger Delta, NNPC holds 60% interest in the licences while, FIRST E&P, the operator of the JV, holds the remaining 40% interest. Apart from providing funding for the development of the fields, Schlumberger would also provide other Oilfield Services to the JV on a limited exclusive basis. A joint project team would be established to drive technology transfer whilst leveraging on the global technical expertise of Schlumberger and the extensive local knowledge of the JV partners.

Leave a comment

Related Articles

Mental Health Care Awareness in Nigeria

by Shine Alagba Nigerians face mental stress due to economic challenges like...

Abuja Court rejects Abba Kyari’s latest bail application

Abba Kyari, the detained Deputy Commissioner of Police, renewed his request for...

FG plans ambitious $100bln expansion fund to enhance Nigeria’s cultural heritage

The Minister of Arts, Culture, and Creative Economy, Mrs. Hannatu Musa-Musawa, has...

Saraki, AbdulRazaq spat over Ilorin Durbar 

Former Senate President, Dr. Bukola Saraki, said he deliberately avoided the Ilorin...

South Africa’s Ramaphosa sworn in for second term as president

“Ramaphosa is expected to announce his cabinet in the coming days as...

Breaking: After Rivers lawmakers’ screening, Gov. Fubara inaugurates 23 LGAs caretaker chairmen

Rivers Gov. Siminalayi Fubara inaugurated the caretaker chairpersons for the state’s 23...

Breaking: Rivers Gov. Fubara appoints caretaker chairmen for 23 LGAs

The nomination came amid a renewed political crisis in the state, with...

Emirate crisis: Gumel promises neutrality, commitment to peace, stability in Kano State

Kano State Police Commissioner Ussain Gumel has refuted claims that his officers...

Updated: Rescued abducted Fouani brothers reunited with families, say Lagos Police

The Lagos State Police Command’s spokesperson, SP Benjamin Hundeyin, has confirmed that...

Emirship tussle: We won’t allow state of emergency in Kano – Sen. Kwankwaso

Sen. Rabi’u Musa Kwankwaso, former Kano State Governor and Kwankwasiyya Movement leader,...

Asari Dokubo to stay-put Rivers LG Chairmen: Go home in peace or face people’s wrath

“The chairmen, whose tenure expired on June 17, cannot force themselves on...

Just in: Lagos Police command rescues abducted Fouani brothers

Operatives of the Lagos State Police Command have rescued the three kidnapped...

Tenure elongation: Rivers Gov. Fubara directs administrative heads to take over 23 LGAs

The Rivers State Governor, Siminalayi Fubara, has directed the Heads of Local...

Ex-Pres. Obasanjo pays Sallah homage to First Lady, Oluremi

Former President Olusegun Obasanjo visited the nation’s First Lady, Sen. Oluremi Tinubu,...

Tinubu off to South Africa for Pres. Ramaphosa’s inauguration

President Bola Tinubu will, on Tuesday, June 18, 2024, depart Lagos for...

Despite Labour’s disapproval, FG insists on N62,000 minimum wage

The Presidency said on Sunday that the demand for a minimum wage...

Palliatives: Tinubu, Sanwo-Olu lauded for channelling food items for vulnerable people through CDC platforms

President Bola Tinubu and the Lagos State Governor, Babajide Sanwo-Olu, have been...

Presidency reacts to New York Times article, says current economic problems not created by Tinubu

Nigeria’s economic downslide was an inherited problem, the Presidency said in a...

Enugu Rangers sweep aside Bendel Insurance to win their eighth league title

The Enugu Rangers won the 2023/24 Nigeria Premier Football League after beating...

Pres. Tinubu honors fathers, calls them ‘true heroes’

President Bola Tinubu, in his Father’s Day message, saluted the dedication and...