Oil & Energy
Nigeria Targets 40bn Barrels Oil Reserves
The Nigerian National Petroleum Corporation (NNPC), says plans to grow the nation’s crude oil reserves to 40 billion barrels by the year 2020 have received a major boost.
The Group Managing Director of the NNPC, Dr Maikanti Baru, said this in Abuja last Thursday in a statement by the Corporation’s Group General Manager, Public Affairs Division, Mr Ndu Ughamadu,
Baru, at a tripartite signing of agreements, said this target would be realised between the NNPC/FIRST Exploration & Production Joint Venture (JV) and Schlumberger for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licence, OML 83 and OML 85, offshore Nigeria.
He explained that under the agreement, Schlumberger would provide the over $700 million development cost of the Anyala and Madu fields, which would generate 193 million barrels of crude oil into the current reserves of 37.2 billion barrels.
Also, an additional 800 billion cubic feet of gas would go into the nation’s proven gas reserves, which currently stand at 197 trillion cubic feet of gas.
“In terms of daily production, the fields will yield 50,000 barrels of crude oil per day and 120 million standard cubic feet of gas per day by early 2019.
“The approach to funding JV operations in response to the challenging economic environment was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetisation of the nation’s enormous gas resources.
“Apart from serving as a test case for future funding mechanism, the approach adopted was in sync with the realisation of the corporation’s 12 Business Focus Areas (BUFA), which is to ramp up crude oil production and reserves growth, amongst others.
“The projected increase in production of gas would come in handy as the Corporation strived to sustain the supply of gas to the existing power plants as well as the planned power projects billed to come on board within the period,” Baru said.
The Managing Director, FIRST E&P, Mr Ademola Adeyemi-Bero, who signed on behalf of FIRST E&P, remarked that, the partnership between the NNPC/FIRST E&P JV and Schlumberger would “infuse a novel asset development model which combines FIRST E&P’s local knowledge and market position as an indigenous operating company, with Schlumberger’s financing and broad technical capabilities”.
He added that, the joint project team would strengthen FIRST E&P’s project delivery abilities and the model would offer the upstream subsector a credible alternative funding and technical partnership model for growing production and adding reserves.
Also speaking, Mr Patrick Schorn, Vice-President, Schlumberger, who signed on behalf of Schlumberger traced the advent of the multi-national oil fields service company in Nigeria to the first commercial oil find in Oloibiri, when Schlumberger played a role in Shell’s drilling effort.
He noted that, the partnership with NNPC and FIRST E&P would provide Schlumberger the opportunity to leverage on its reservoir knowledge, oilfield services and project management expertise to lower development costs and maximise value for the partners.
The OMLs 83& 85 are in shallow waters 40 kilometres offshore in the Niger Delta.
NNPC holds 60 per cent interest in the licences while, FIRST E&P, the operator of the JV, holds the remaining 40 per cent interest.
Apart from providing funding for the development of the fields, Schlumberger would also provide other oilfield Services to the JV on a limited exclusive basis.
A joint project team would be established to drive technology transfer whilst leveraging on the global technical expertise of Schlumberger and the extensive local knowledge of the JV partners.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
