The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Wednesday said that Nigeria’s quest to boost crude oil production was making significant strides.
He stated that this has become even more apparent, given that the Abigail Joseph Floating Production Storage and Offloading (FPSO) facility, operated by the Nigerian National Petroleum Company Limited (NNPC) and First E&P Joint Venture (JV) on OML 83/85 ramps up output.
During an inspection offshore Bayelsa State, Lokpobiri applauded the facility’s progress and its ambitious production goals, a statement by Lokpobiri’s spokesperson, Nneamaka Okafor, stated.
Currently producing 60,000 barrels per day, the FPSO, Lokpobiri said, is on track to achieving 70,000 bpd in the near term, with plans to scale up to 100,000 bpd in the near future.
Speaking on the site, Lokpobiri emphasised the strategic importance of the facility, stating that the ongoing work reflects the collective efforts to increase Nigeria’s crude production.
“It is impressive to see such commitment from NNPC and First E&P, especially as First E&P pursues a 23-well drilling campaign to sustain and enhance output. This is a vital step toward achieving our national production targets,” he stated.
Lokpobiri lauded the role of joint ventures like the NNPC-First E&P partnership in driving growth within Nigeria’s oil sector, urging other indigenous operators to leverage the opportunities presented by ongoing reforms to further the country’s energy objectives.
“The Abigail Joseph FPSO stands is a symbol of progress and collaboration in Nigeria’s oil industry, demonstrating the transformative potential of indigenous-led partnerships and innovation in unlocking hydrocarbon wealth. With sustained efforts and strategic investments, the NNPC-First E&P Joint Venture is well-positioned to make significant contributions to the nation’s oil production capacity,” he added.
In his remarks, the Managing Director and Chief Executive of First E&P Limited, reaffirmed the company’s dedication to delivering results.
“We are fully committed to meeting and surpassing our current production goals. With the support of our partners and ongoing de-bottlenecking initiatives, we are confident of achieving 70,000 bpd and eventually 100,000 bpd in record time.
“This project underscores the capability of indigenous companies to deliver on ambitious targets,” he noted.
Also speaking, the Chief Upstream Investment Officer (CUIO) of NNPC Upstream Investment Management Services (NUIMS), Mr. Bala Wunti, assured the minister of the joint venture’s alignment with national objectives.
“The milestones achieved here at Abigail Joseph FPSO are a testament to NNPC’s determination to deliver results through strategic partnerships and innovative approaches.
“With the stir of the Group Chief Executive, we are committed to meeting the minister’s directive to ramp up production in no distant time,” Wunti said.
Meanwhile, in a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.
In July, 2024, NNPC and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain, a statement by NNPC spokesman, Olufemi Soneye, said.
During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E&P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day with minimum downtime.
“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330 million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000 bpd by January 2025 and 60,000 bpd to 65,000 bpd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000 bpd by the end of 2025,” Foucart added.
He said the Utapate crude oil terminal was sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend was similar to that of Amenam crude.
Sade noted that this is because it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC wanted to optimise value for both its producers and counterparties across the globe.
To ensure predictability and sustainability of supply, the NNPC Trading, he said, intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655 per cent and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations, the NNPC said.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
“The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
“This remarkable achievement signals the commitment of the NNPC to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets,” the statement said.
Emmanuel Addeh and Peter Uzoho
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