…As Nigerian contractors commit $2bn
By Adewale Sanyaolu
FIVE months ahead of its startup date, Exxonmobil Erha North Phase 2 project has commenced crude oil production with an additional 165 million barrels.
The development is expected to increase its daily crude oil production by 90,000 barrels from the current 65,000.
A statement from the Manager, Media and Communications, Mobil Producing Nigeria Unlimited, Mr. Oge Udeagha, quoted the President of ExxonMobil Development Company, Mr. Neil W. Duffin, as saying “executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach. We are able to create additional shareholder value by optimising existing infrastructure, which reduces capital spending requirements and improves capital efficiency,” he said.
The project, according to Exxonmobil, is to be executed by its subsidiary, ESSO Exploration and Production Nigeria Limited at the Erha North Phase 2 project offshore Nigeria.
The Erha North Phase 2 project is a deepwater sub-sea development located 60 miles offshore Nigeria in 3,300 feet of water and four miles north of the Erha Field, which has been producing since 2006.
The Erha North Phase 2 project includes seven wells from three drill centres tied back to the existing Erha North floating production, storage and offloading vessel, thus reducing additional infrastructure requirements.
Duffin said the ahead-of-schedule startup was supported by strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including sub-sea equipment, facilities and offshore installation.
“These contracts are bringing direct and indirect benefits to the Nigerian economy through project spending and employment, consistent with project objectives,” Duffin said.
ExxonMobil expects to increase its global production volumes this year by 2 per cent to 4.1 million oil-equivalent barrels per day, driven by 7 per cent liquids growth. The volume increase is supported by the ramp up of projects completed in 2014 and the expected startup of major developments in 2015.
Source : SunOnline