Stakeholders in Ikwerre Local Government Area of Rivers State have taken to the streets to celebrate following the successful re-entry, work-over and completion of Ubima-01 Well 56 years after as the operator of the Ubima Marginal Field, All Grace Energy Limited (AGEL), last Friday, commenced production and extended well test programme from the field.
This development was witnessed at the field as major stakeholders gathered to be part of what was described as milestone achievement in the oil and gas industry in Nigeria.
The Department of Petroleum Resources (DPR) had approved the extended well test for the Ubima-01 Well for AGEL, and the company commenced crude evacuation from the well test via trucking to the Otakikpo Marginal Field for further storage and eventual crude evacuation and export.
According to the Technical Director, Liberty Udochu, the company is expected to ramp up production to about 20, 000 barrels per day over the next couple of weeks.
Udochu said it was a significant milestone for a field that was discovered by the Shell Petroleum Development Company (SPDC) since 1963 but had been left undeveloped for close to six decades.
“The well test programme will provide valuable subsurface and production information that are critical to understanding planning future field development”, Udochu explained.
He emphasized that AGEL was in discussions with a consortium of international stakeholders to drill more wells and upgrade existing facility to accommodate the increased production target of 20,000 barrels per day.
This, according to him, also includes the construction of a 20-inch 120km pipeline from the Ubima field to the proposed Otakikpo Onshore Terminal.
“This plan is imaginative and unprecedented for an indigenous company and it is expected to provide a ground breaking infrastructure for the Nigerian E&P across eastern Niger Delta”, Udochu said.
“The pipeline is expected to pass through several prolific but hitherto stranded marginal fields, thereby unlocking the potentials of the fields for faster, cheaper and more efficient export route to the market.
“There are also significant benefits to Rivers State and the country since most of the reserves from these fields had been written off as uneconomical”, Udochu added.
He commended the team spirit that achieved the significant milestone, and noted that while the team continues to develop and maximize the field’s potential, “the operations must be carried out in the most environmentally compliant manner”.
Udochu said community relations cannot be overemphasized, adding that AGEL would always consider host communities’ interests and carry them along in the field’s development dealings while ensuring full compliance with the terms and conditions of the MoU with them.
In his remarks, the AGEL’s Director for Corporate Affairs, Mr. Taiwo Onasile, explained that the Field’s Development Plan aims at achieving zero gas flares through the gas-to-power and LPG production under the company’s Small-Scale Gas Utilization Programme (SSGUP) as part of the field development.
Commending the DPR for speedy approvals of the well test and evacuation permits, he noted that the DPR’s support was instrumental in attracting the necessary financing to unlock the potentials of the field as it boosts investors’ confidence in the project.
According to him, the development, “Marks a major step forward for us and our partners to fully develop the Ubima Field and we shall work hard to do so.”