Nigeria set for additional 20,000bpd as FIRST E&P loads out Madu CSP

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3 years ago

The Nigerian National Petroleum Company (NNPC)/FIRST E&P joint venture is set to shore up the nation’s production capacity with a further 20,000bpd of crude following the MADU CSP load-out, on Tuesday, in Lagos.

The fully Nigerian fabricated oil production facility will begin its journey on Wednesday to Anyala Field in Port Harcourt, Rivers State, where it will be onloaded to the existing subsea platform already installed by the company.

Speaking at the load-out event in Lagos on Tuesday, the Managing Director, Chief Executive Officer of FIRST E & P, Mr Ademola Adeyemi-Bero, said the OML83 and 85 licences are offshore in shallow water and as Nigerian JV, “we have to look for a concept on how to produce oil safely and sell it.”

According to him, “We set out with three objectives – how to do this safely, how to use the whole Nigerian local content Act to ensure that most of these things can be built in Nigeria, and how to generate as much revenue for the government by ensuring production cost is as low as possible.

“So we looked around the world and discovered this concept to put in the platform. It is a small footprint, some others can contain about three or four times this size, but this platform can contain eight to 10 wells.

“We have already done the first one – the Anyala Platform, which is in Port Harcourt and currently producing 45,000bpd today. This platform will produce at least 20,000bpd and also produce a lot of gas.

“What motivated us was whether we can we do it safely, give Nigerians employment, and do it at a cost which gives more revenue to the government and stakeholders.”

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He added that “The cost of building, based on the volume we have in our reservoir, will be less than $5 per barrel, and they call that unit development cost. But when we start operations, we expect the unit operating cost to be less than $10 per barrel. That’s our objective.

“For instance, today oil sells for $90, but if I can develop this at $5, that means the cost of development is low. What the government has always wanted is to make the cost of development less than $20. Here it will be less than $15 by the time we are done.

“So we looked at the capacities and capabilities of companies in Nigeria and designed a platform that fits their capability.”

For the Chairman of Dorman Long, Dr Timi Austin Peters, the fabrication was 100 per cent local content, which showed capacity.

In the words of Dr Timi Austin Peters, “For local content, we imported flat sheets of steel, and all of it was rolled, designed, curved by Dorman Long, so essentially, you put people to work.

“When Ajaokuta Steelworks, we won’t need to import flat steel anymore, that means everything will be done here.

“So, that’s local content. You are putting people to work. You are putting contractors to work and we are hoping we can do more of this and put more Nigerians to work. They will have more experience.

“Benefits include the domestication of expenditure, so we are not looking for dollars to go and give companies all over the world. Rather, you are giving the job to a Nigerian company.

“We are spending the money locally, employing Nigerians, giving the youths the opportunity to get training so that they can also in the future do something like this.

“We are domesticating expertise, skills; all the way we are making sure we are doing everything in-country.

“This platform is going to be producing oil and gas, about 20,000bpd. That’s a very significant contribution to the Nigerian treasury. We have been struggling to meet our OPEC quota, so this is a major addition to that.

On his part, the Group General Manager, National Petroleum Investment Services (NAPIMS), Mr Bala Wuanti, said the facility is in line with the mission of the new NNPC (Nigerian National Petroleum Company), towards ‘Reliably delivering the energy while continuously creating value for all stakeholders’.

“Represented by the General Manager, NAPIMS Joint Venture, Mr Zachariah Buduwara, Wuanti noted that the NNPC Ltd did not achieve this alone but “relied heavily on the support and cooperation of our partners, and we will continue to do so.

“In crafting our mission and vision statements, we were deliberate about having a shared vision with our partners and are positive this will yield the desired benefits.

“We are proud of the feats we have achieved with the First E&P Joint Venture – from the successful delivery of the phase-1A scope of Anyala-Madu Field development project during the uncertainties of the COVID-19 pandemic to sustaining offshore production operations in a safe and sustainable manner.

“We are committed to supporting the JV to yet again deliver remarkably on the Phase-1b. The Madu field development will raise the total JV production capacity to approximately 60,000 BOPD and facilitate the elimination of gas flaring.

“Today’s CSP load-out is indeed no mean feat. I would like to commend the management and staff of First E&P, our entire project team for the hard work they have invested into the project so far, and the contractors, Dorman Long, for their diligence and continuous support,” Mr Bala Wuanti, stated

Since its inception in 2012, FIRST E&P has built a robust portfolio of oil and gas assets: with 40 per cent direct interest in OML 83 & 85 shallow water offshore assets; 6.75 per cent indirect interest in OML 71 &72 shallow water offshore assets; and 4.5 per cent indirect interest in OML 34 onshore asset.

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Nigeria set for additional 20,000bpd as FIRST E&P loads out Madu CSP

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Nigeria set for additional 20,000bpd as FIRST E&P loads out Madu CSP