American multinational oil company, ExxonMobil, has defied the industry downturn to deliver its deepwater field development, leveraging on acute cost reduction strategy and rapid job execution by service providers in the project. The project which unlocks significant production capacity in the Erha North field would be the first of the set of deepwater field development projects to come online in the year.
Other major development projects expected to be delivered by major oil firms in the country include the Chevron operated on- shore Dibi field to yield 70, 000 barrels of oil per day (70 kbd) and Sonam field development with profile for 30 kbd respectively. Second phase of Shell’s Gbaran-Ubie natural gas project is also expected to develop capac- ity for 30 kbd while Total’s Egina is focused on 200 kbd.All the pro- jects are expected to be delivered between 2015 and 2017.
ExxonMobil which has brought the second phase of Erha North field online declared that the project delivery strategy saved stakeholders princely N400 million in cost and five months of time. The Erha North II grows Nigeria’s average production capacity and actual production by 65, 000 barrels per day of light crude oil and also test the waters for a number of deepwater field development projects in the country that have been caught in the oil price downturn.
It also optimizes production facilities at the Erha Main deep- water field also operated by the Esso Exploration and Production Nigeria Limited, the local deep- water affiliate of ExxonMobil in the country. According to regulators, apart from capacity availability associated with the Erha North II project, Nigeria’s actual crude oil production has increased by some 65, 000 barrels per day.
The company stated that the project was delivered ahead of schedule and below budget. Cost savings came from pro ject plans that made use of existing production facilities in proximate Erha North field, limiting development activity and budget to subsea equipment and risers that locate floating production vessel and treatment plants at proximate sister field.
In his words, “your state will have a direct access to inter- national trade hub with China, Dubai, UK and Europe because cargo will be globally consoli- dated and it will be cheaper for Eastern businessmen to directly send their cargo to Enugu rather than to send it to Lagos.”
– Sopuruchi Onwuka