Otakikpo field to edge up oil production by 8,350 bpd


Green Energy International Limited (GEIL) will soon increase crude oil output by 8,350 barrels per day (bpd). The firm is set to begin production from its Otakikpo marginal field in oil mining lease (OML) 11, it was learnt.

Otakikpo is in a coastal swamp of Rivers State. It is located approximately 60 kilometres Southeast of Port Harcourt, Rivers State.

Green Energy, in a statement in Abuja, by its Technical Director, Mr. Bunu Alibe, said the planned commencement of crude oil export followed the successful completion of Maximum Efficiency Rate, (MER) test on the production wells of the Otakikpo marginal field supervised by the Department of Petroleum Resources (DPR).

He said following the success of the test, the Otakikpo field has been given a technical allowable rate (TAR) of 8,350 barrel of oil per day (bopd) from the four strings in two wells – Otakikpo 2 and Otakikpo 3 for the first quarter of this year.

In addition, the company, he said, has been given the commercial allowable rate (CAR) of 5,000 bopd for February this year by the crude oil marketing department of the Nigerian National Petroleum Corporation (NNPC).

According to Alibe, the field has the capacity of adding about 10,000 bopd to the national production when operational.

He said: “Having successfully completed its pipeline from the field to six kilometres offshore in preparation for crude evacuation through a shuttle tanker and finalised its Crude Handling Agreement (CHA) with Amni International Petroleum Development company, GEIL has recently secured an Evacuation Permit from the regulatory body to enable it move its crude to Ima terminal operated by Amni.”

Other milestones achieved by the company, according to Alibe, include the approval of its Field Development Plan and the installation of its processing facility, while it has also completed an onshore storage facility of 45,000-barrel capacity.

He said the company and its Technical Partner – Lekoil Oil and Gas Investment Limited, were poised to follow through all processes of crude oil export before the end of the quarter.

Alibe explained that as part of its commitment to uplift the socio-economic status of the host communities, the company was embarking on the immediate installation of six megawatts electricity plant while ensuring that the Trust Fund set up to finance development projects and managed by the community, are adequately funded.

He expressed the company’s appreciation to all regulatory agencies and other stakeholders for their support in bringing the field to production. He also thanked the technical partner and its employees for their efforts in achieving the milestones.

According to Alibe, under a farm out from Shell Petroleum Development Company, Joint Venture (SPDC JV), the Federal Government awarded the marginal field to Green Energy, which it designated as the Operator, to implement the company’s innovative Small Scale Gas Utilisation Programme (SSGUP).

Otakikpo field was identified as one of the suitable sites for a pilot programme that offers unique solution to utilize the gas from the field for power generation, and liquefied petroleum gas (LPG), production for domestic cooking.

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Author Bayo Alaga writes sweet, catchy, business analysis also a tech lover. His loves to fix gadget and surprisingly keeps up with latest stories on stock, bond, market and commodities. A graduate of Marketing from UNILAG, and resides in Lagos. facebook.com/BayoAlaga_ twitter: @BayoAlaga_