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Nigeria adds 20Kbpd to oil production from OML 85

Oil rig

By Tochukwu Bliss, Abuja

Nigeria’s production got a lift today, with an increase of its daily oil output by an additional 20,000 barrels (Kbd).

The accretion follows the commencement of oil production from the Madu Field.

The asset is a Joint Venture between the Nigerian National Petroleum Company Limited (NNPC Ltd) and its partner in oil mining lease (OML) 85, First Exploration and Petroleum Development Company Limited (First E&P).

Production from the field, which is located in shallow waters offshore Bayelsa State, and operated by First E&P is expected to be at an average of 20Kbd, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, said in a statement.

Latest report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), put the country’s production at 1.23 million bpd (ex-condensates) in March 2024.

This represented a drop by 7% from the 1.32mbpd recorded in February, after reaching a 2-year high of 1.43mbpd.

The decline was attributed to production drops in four major terminals related to oil companies’ pipeline problems and ongoing maintenance, according to the Organization of the Petroleum Exporting Countries (OPEC) and Nigerian officials.

The commencement of oil production at the Madu Field is a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

For the NNPC, the cheery news “is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of enabling environment for existing and prospective investors.”

The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, was quoted as describing the commencement of oil production at the Madu Field as a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

Kyari, who commended stakeholders for their support, also explained that the addition of 20Kbd by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.

NNPC recalled that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd/First E&P JV in 2018.

It added that production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000bbls.

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