Oando Energy Services is part of the lucky consortium that grabbed the drilling contracts for which Nigerian National Petroleum Corporation and Chevron Nigeria Limited secured and $1.2 billion.
With the money, loaned from Standard Chartered Bank and United Bank For Africa (UBA), Chevron plans to drill 23 onshore and 13 offshore wells in two stages over the next three years.
It is not clear whether Oando would be working in consortium with Shelf Drilling which is also involved in the drilling campaign or whether the two firms would work separately.
It was gathered that OES which operated onshore and swamp rigs would take up the onshore fields with its Oando Respect.
The offshore drilling will be handled by Shelf Drilling, which will deploy Trident VIII. he first stage of the work programme, comprising of 19 wells, is projected to deliver 21,000 barrels of crude oil and condensate per day alongside 120 million standard cubic feet of gas each day in 2015 and 2016.
And the second stage, comprising of 17 wells, is projected to yield 20,000 barrels of crude oil and condensate per day alongside gas production of 7 million standard cubic feet of gas each day between 2016 and 2018.
Meanwhile, the loan signals introduction of alternative funding to operations of the JVs as more loans are being processed by the major upstream Joint Ventures in the industry.
Going to the banks to borrow money for projects is not uncommon for NNPC Joint Ventures; what’s different with Chevron is that this is not for a specific project, but for conventional work programme.