By Anayo Korie / Ag Energy Editor
Oando Energy Resources (0ER), an arm of Oando group of Companies with focus on oil and gas exploration and production in Nigeria, has announced the completion of 51km Umugini pipeline for the conveyance of 45,000 barrels of oil in its mining concession.
The pipeline will provide an alternative evacuation route for crude oil produced from the Ebendo Field through the Trans Forcados export pipeline, Mr. Pade Durotoye, CEO, Oando has said.
Durotoye, who disclosed the development in Lagos yesterday said the completion of the Umugini pipeline now allows the firm to maximize the value of investments to date as the asset will provide the latitude for further profitable development of prospects and resources identified in Ebendo.
‘‘Following the successful drilling of Ebendo wells 5, 6, and 7 over the past 12 months, oil production capacity within OML 56 has grown to 7,140barrels of oil gross for OER and Energia Limited the operator of the asset (3,052 barrels of oil daily net to OER).
However, export had been constrained at 3,093barrels of oil daily (1,322barrels of oil daily OER Share) via the Agip operated Kwale-Brass NAOC/JV infrastructure, in which OER currently has a 20 per cent interest through the recent $1.5billion acquisition of ConocoPhillips Nigerian Oil & Gas Business.
The completion and commencement of operations on the Umugini pipeline ensures that the Ebendo field can now produce at its full capacity.’’he noted.
Source : Independent
