Mobil Producing Nigeria Unlimited (MPN), a subsidiary of ExxonMobil Corporation, has made a new break through in power supply, as the company has announced a discovery of a rich gas condensate, offshore in Akwa Ibom State in the Niger Delta region.
Authorities of MPN disclosed that the discovery was made in its Oil Mining License (OML) 104, which is approximately 75 kilometers offshore of Akwa Ibom.
Christened Pegi-1, the company said, “the discovery well was drilled in 315 feet (96 meters) of water to a total depth of 11, 407 feet (3, 477 meters), beneath the Awawa field, and encountered 165 net feet (50.3 meters) of rich gas condensate.”
Describing the discovery as another example of the company’s commitment to the growth of the oil and gas industry in Nigeria, the Chairman and Managing Director of Mobil Producing, Mr. Mark Ward said the oil multinational is focused on developing oil and gas reserves and supplying natural gas that will boost commercial power production in line with the Federal Government’s aspiration.
Another statement by the company’s Executive Director, External Affairs, Mrs Glorai Essien-Danner, said the Pegi discovery is part of Exxon Mobil and NNPC’s Programme to increase oil and gas reserves and production capacity, and to also supply sufficient power and natural gas to the industry in Nigeria.
According to Essien-Danner, pending results from additional exploration planned in the area as well as development studies will determine the optimal plan for bringing this newly discovered resource into production.
Analysis of recovered samples, according to experts, indicates an American Petroleum Institute (API) gravity of approximately 41 degrees while significant additional potential remains in untested deeper targets within the Pegi fault block as well as in adjacent fault blocks.
Nigeria is regarded as more of a gas country than oil, with her gas reserves put at approximately 183.3 trillion standard cubic feet (TSCF), made up of associated gas (AG) of 96.0 TSCF and non-associated gas of 87.2 TSCF, according to the calculations of Department of Petroleum Resources (DPR), which is the industry regulator.
Federal Government being conscious of the gas wealth in the nation, developed an ambitious gas master plan with a view to fast-tracking commitment to domestic gas obligation for Independent Power Projects (IPP) in line with government accelerated aspiration for electric power generation.
Unfortunately, however, inconsistency in policies, non-commercial gas pricing, finding, implementation and dearth of gas gathering infrastructure efforts in new gas finds have continued to hamper the policy.