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Nigeria hopeful of improved oil output as OML 83/85 produce 20,000 bpd

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The daily crude oil production volume in Nigeria appears to have received a boost from improved production as FIRST Exploration and Petroleum (E&P) Development Company Limited announced the Madu Conductor Supported Platform (CSP) will add an extra 20,000 barrels of oil per day (bpd) to Nigeria’s total offshore production. The CSP is a crucial and integral infrastructure for the OML 85 Asset’s next phase of growth, according to FIRST E &P’s Managing Director Ademola Adeyemi-Bero. The MD also noted that engaging an indigenous company to build it is a sign of Nigerian National Petroleum Company Limited (NNPC)/FIRST E&P’s OML 83/85 joint Venture belief and commitment to Nigerian content.

Adeyemi-Bero made this statement at the official load-out of the newly constructed oilfield platform by Dorman Long Engineering Limited at the Nigerian Naval Dockyard in Lagos. In keeping with the government’s instruction to produce and develop oil and gas for less than $20, Adeyemi pointed out that the CSP is a small platform that can contain eight to ten wells. When these wells are operating, he claimed the CSP will operate at a unit cost of less than $10 per barrel. According to Adeyemi-Bero, this project is in addition to the Anyala Field investment in the delivery of oil production wells and necessary hydrocarbon processing and handling infrastructure (CSP, FPSO), which continues to sustain over 40,000 barrels of oil per day and generates steady income for the country. He continued by saying that the company is trying to attain a production capacity of 100,000 barrels of oil and gas per day in order to provide Nigeria self-sufficiency and increase local jobs. Timi Austen- Peters, the chairman of Dorman Long Engineering Nigerian Naval Dockyard, said the country is proud of the project, which was executed by an indigenous company. As the nation has been struggling to achieve its OPEC quota, he said the platform, which will be producing roughly 20,000 barrels of oil and gas per day, is highly important for the Nigerian economy. He claims that the project’s advantages include the domestication of expenses, employment of Nigerians, and training of young people. “We are not looking for dollars to go and give to foreign companies, rather, we give it to Nigerian companies; we are spending the money locally and employing Nigerians as well as giving youths opportunity to get training so that they can also in the future do things like this. We are domesticating expertise and skills. We are making sure we keep everything in the country,” he said.

In light of Nigeria’s inability to meet up with OPEC production quota which is consequently affecting the nation’s economy. The addition of 20,000 bpd will go a long way in helping the country achieve her OPEC production quota. However, this does not signify any change in the prices of AGO/MGO in the foreseeable future.

Source:  BusinessDay, Newstimes

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