Nigeria FG to consolidate on improved power supply, as NPDC reaches new level in gas production
Renewed efforts by the Federal Government to sustain the existing improvement in power supply received a major boost with the unveiling of the Oredo Integrated Gas Handling Facility by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke at the Nigerian Petroleum Development Company, NPDC operated Oredo field in Edo State.
The facility which currently supplies 65 Million Metric Standard Cubic Feet per Day (MMscfd) has ramped up NPDC’s total gas production to a record level of 400MMscfd with projected growth to 600MMscfd by year end is envisaged to provide invaluable tonic to the Federal Government’s power supply aspiration.
Speaking at the ceremony, Mrs. Alison-Madueke noted that the project is in line with the ongoing reform process in the industry designed to vigorously ensure the monetization of the nation’s gas endowment through gas to power and other gas related industrialization.
The Minister stated that the Oredo gas project which is 100 percent local content in both design and construction is reflective of the Federal Government’s desire to grow and support effective indigenous participation in the oil and gas industry.
"It is this commitment to support indigenous oil and gas production growth that led to the assignment of a number of assets to NPDC. Government’s commitment is further reflected in the Petroleum Industry Bill (PIB) 2012 currently before the National Assembly, where special consideration has been given to indigenous players in the industry,’’ the Minister.
Providing technical details of the project, Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu said the IGHF which symbolizes NNPC’s response to the Federal Government gas to power initiative is the first major gas development project aimed at realization of NPDC’s strategic growth plan of being an integrated oil and gas company.
"The Oredo gas plant is an Integrated Gas Handling Facility (IGHF) designed with a module for LPG production and other liquids extraction facilities. While substantial volume of gas from the facility is designed for the Ihovbor power plant, the balance will be injected into domestic gas supply pipelines grid. This facility also has the capacity to eliminate gas flaring in compliance with Federal Government environmental requirement,’’ the GMD said.
He explained that currently, the Corporation through the NPDC is pursuing with vigor the development of more resources in order to provide gas to PanOcean Oil Company (POOC) to achieve optimal utilization of their gas plant.
“This will require drilling more wells, construction of manifold and flow lines, 22km pipeline and separators. These activities will come along with the related business and employment opportunities,’’ Engr. Yakubu stated.
Managing Director of the NPDC, Engr. Victor Briggs pledged the commitment of management and staff of the company to achieving NPDC’s growth plans and business projections.
“I will like to give the Honorable Minister comfort that NPDC will not only meet its gas supply target of 200MMdcfd from OML 111, but will be able to sustain this production for the next 20 years based on existing reserves in this OML; however there are additional exploration potentials,’’ Briggs enthused.
Established in 1988 as a fully owned company of the Nigerian National Petroleum Corporation, NNPC, the NPDC aspires to emerge as Nigeria’s flagship indigenous Exploration and Production Company with World class standard.
In line with that vision, NPDC is today involved in exploration, exploitation and production in 20 concessions covering both onshore and offshore blocks. These efforts translate to current reserves of 2.1 billion barrels of crude oil and 10.17 trillion cubic feet of gas.
As at the last check, NPDC produces an average of 130,000 barrels of crude per day and currently ranks the 5th largest oil producing company in the country. Records indicate that going by recent performance, NPDC is poised to surpass its growth target of 250,000 barrels of oil per day by the year 2015.
The NPDC Oredo IGHF is sited on Oil Mining Lease (OML) 111. The Lease consists of three fields with an average production capacity of 6,000 barrels of crude oil per day (bpd) with more prospects for further development.
info@africabusinesscommunities.com
Follow us on Twitter!
www.twitter.com/africabizz
www.twitter.com/andreaayemoba