The Nigerian National Petroleum
Corporation (NNPC) has said its aspiration to attain 250,000 barrels of oil per
day (bpd) production by 2015 is on.
He said it would government’s
policy to unbundle the NNPC as provided in the Petroleum Industry Bill (PIB)
now before the National Assembly.
policy to unbundle the NNPC as provided in the Petroleum Industry Bill (PIB)
now before the National Assembly.
The production target would be achieved
through NNPC’s subsidiary in charge of exploration and production (E&P),
National Petroleum Development Company (NPDC).
through NNPC’s subsidiary in charge of exploration and production (E&P),
National Petroleum Development Company (NPDC).
The Group Managing Director of NNPC,
Andrew Yakubu, had on assumption of office assured he would ensure aggressive
transformation of the corporation and its subsidiaries to be globally
competitive and carry out its operations in line with global best practices.
Andrew Yakubu, had on assumption of office assured he would ensure aggressive
transformation of the corporation and its subsidiaries to be globally
competitive and carry out its operations in line with global best practices.
Yakubu during his inaugural town hall
meeting with management and staff of the NNPC said the management team under
his watch would introduce new business models in all its Strategic Business
Units (SBUs) and Corporate Service Units (CSUs) to ensure the commercial
viability of the corporation in order to remain competitive in the global oil
and gas industry. Yakubu stated that the management team would reposition the
NNPC to become a commercially focused and profit-driven organization that is
governed by best management practices using current technology, pursue and
maintain competitive operational and business efficiency, cost effectiveness,
input/output optimization, revenue maximization and profitability.
meeting with management and staff of the NNPC said the management team under
his watch would introduce new business models in all its Strategic Business
Units (SBUs) and Corporate Service Units (CSUs) to ensure the commercial
viability of the corporation in order to remain competitive in the global oil
and gas industry. Yakubu stated that the management team would reposition the
NNPC to become a commercially focused and profit-driven organization that is
governed by best management practices using current technology, pursue and
maintain competitive operational and business efficiency, cost effectiveness,
input/output optimization, revenue maximization and profitability.
Before 2010, the NPDC was producing
about 65,000bpd but by 2010, the company was given a target to attain 250,000
bpd production by 2015. In compliance with this directive, the company has ever
continued to rev up production and currently stands at 130,000 bpd.
about 65,000bpd but by 2010, the company was given a target to attain 250,000
bpd production by 2015. In compliance with this directive, the company has ever
continued to rev up production and currently stands at 130,000 bpd.
According to the NPDC, the bulk of the
recent production level is from the oil mining leases (OMLs) assigned to the
company following the divestment of by some of the Joint Venture partners such
as Shell. This kind of growth was described by the Managing Director of NPDC,
Mr. Victor Briggs, as “not being organic,” thus the need for NPDC to commence
aggressive drilling programme to grow its production in an organic fashion.
recent production level is from the oil mining leases (OMLs) assigned to the
company following the divestment of by some of the Joint Venture partners such
as Shell. This kind of growth was described by the Managing Director of NPDC,
Mr. Victor Briggs, as “not being organic,” thus the need for NPDC to commence
aggressive drilling programme to grow its production in an organic fashion.
In view of the desire to attain the
target, Briggs said the NPDC has activated a plan to drill 40 wells in the next
five years, which is an average of eight wells per year. This plan is
significant and ambitious considering that through the last five years NPDC
drilled only 10 years, an average of two wells per year, he added. He said the
aggressive drilling programme has commenced with the drilling of Okono 6 and 7
wells in OML 119, he said.
target, Briggs said the NPDC has activated a plan to drill 40 wells in the next
five years, which is an average of eight wells per year. This plan is
significant and ambitious considering that through the last five years NPDC
drilled only 10 years, an average of two wells per year, he added. He said the
aggressive drilling programme has commenced with the drilling of Okono 6 and 7
wells in OML 119, he said.
Briggs said: “These two new wells are
producing 12,000bpd. “The only way we can increase our production is really by
going out there and do the work. It is either you are repairing a well that has
gone down because there are technical issues or you are drilling a well. In the
case of Okono, it is the latter because we know there are potentials and all we
did was to go out there and drill. I consider Okono 6 and 7 a success because
the two wells combined are delivering over 12,000 barrels per day and that by
any standard is significant especially in an area where most of the wells
around are producing an average of 2,000bpd to 3000bpd.
producing 12,000bpd. “The only way we can increase our production is really by
going out there and do the work. It is either you are repairing a well that has
gone down because there are technical issues or you are drilling a well. In the
case of Okono, it is the latter because we know there are potentials and all we
did was to go out there and drill. I consider Okono 6 and 7 a success because
the two wells combined are delivering over 12,000 barrels per day and that by
any standard is significant especially in an area where most of the wells
around are producing an average of 2,000bpd to 3000bpd.
“Under the able leadership of the
former Managing Director who is now Group Executive Director Exploration and
Production, Engr. Abiye Membere, our production grew from between 60,000bpd and
65,000bpd to about 130,000bpd. That is about 100 percent growth. For us to meet
the 250,000bpd target by 2015, we will have to do another 100 percent growth
from our current production. And that is what we are trying to do. First, we
tried to repair some of the wells to restore their production capacities. For
instance, in OML 26, between when that asset was handed over to NPDC in June
and now the production of that field was doubled. All of these have added up to
the 130,000bpd production that we are talking about today.
former Managing Director who is now Group Executive Director Exploration and
Production, Engr. Abiye Membere, our production grew from between 60,000bpd and
65,000bpd to about 130,000bpd. That is about 100 percent growth. For us to meet
the 250,000bpd target by 2015, we will have to do another 100 percent growth
from our current production. And that is what we are trying to do. First, we
tried to repair some of the wells to restore their production capacities. For
instance, in OML 26, between when that asset was handed over to NPDC in June
and now the production of that field was doubled. All of these have added up to
the 130,000bpd production that we are talking about today.
“To meet the 250,000bpd target by 2015
means doubling our production as I said earlier, but I am confident that we
will meet the target because the resources are there and the reserves are
there, and we have the people. Everything is therefore set for us to meet the
target. For example, in the last five years NPDC drilled 10 wells, but we have
a target to drill about 40 wells in the next five years. We have two rigs on
site today, one offshore and the other one onshore and by the middle of next
year we will bring in one more rig and towards the end of the year we will
bring in the fourth rig. I believe we shall keep those rigs for the next two
years.”
means doubling our production as I said earlier, but I am confident that we
will meet the target because the resources are there and the reserves are
there, and we have the people. Everything is therefore set for us to meet the
target. For example, in the last five years NPDC drilled 10 wells, but we have
a target to drill about 40 wells in the next five years. We have two rigs on
site today, one offshore and the other one onshore and by the middle of next
year we will bring in one more rig and towards the end of the year we will
bring in the fourth rig. I believe we shall keep those rigs for the next two
years.”
The company said that the drilling of
Okono 6 and 7 wells is significant in that it represents a realistic step
towards growing the company’s production as well as national production
positively. In furtherance of this plan, NPDC has two rigs in site as at today,
one is working on Okono 8 while the other is a drilling at Oredo in OML 111.
Okono 6 and 7 wells is significant in that it represents a realistic step
towards growing the company’s production as well as national production
positively. In furtherance of this plan, NPDC has two rigs in site as at today,
one is working on Okono 8 while the other is a drilling at Oredo in OML 111.
More rigs will be deployed by next year
and also key to this programme is efforts to grow reserves, Briggs said. He
noted that while the company is drilling to increase production, the management
is also working hard to boost reserves because it is the only way to ensure
sustainability. For instance, he said that in one of NPDC’s wells in Okono, the
company is drilling deeper to assess its potential. That drilling is going on
very well as at today; and if we find what I think we will find, and I think we
will find it, that will give us more reserves in that field, Briggs added.
and also key to this programme is efforts to grow reserves, Briggs said. He
noted that while the company is drilling to increase production, the management
is also working hard to boost reserves because it is the only way to ensure
sustainability. For instance, he said that in one of NPDC’s wells in Okono, the
company is drilling deeper to assess its potential. That drilling is going on
very well as at today; and if we find what I think we will find, and I think we
will find it, that will give us more reserves in that field, Briggs added.
NPDC is also breaking grounds in
keeping with its vision to play a leading role in meeting the Federal
Government’s aspiration to provide enough gas for domestic use especially in
power generation. The Phase 1 of the Oredo Gas Handling Facility situated near
Ologbo within the OML 111 has been completed. It currently supplies 65 million
standard cubic feet (mmscf) per day of gas to the Nigerian Gas Company (NGC)
for onward transmission to Power Holding Company of Nigeria (PHCN) and the
National Integrated Power Project (NIPP) Power plants.
keeping with its vision to play a leading role in meeting the Federal
Government’s aspiration to provide enough gas for domestic use especially in
power generation. The Phase 1 of the Oredo Gas Handling Facility situated near
Ologbo within the OML 111 has been completed. It currently supplies 65 million
standard cubic feet (mmscf) per day of gas to the Nigerian Gas Company (NGC)
for onward transmission to Power Holding Company of Nigeria (PHCN) and the
National Integrated Power Project (NIPP) Power plants.
The facility was originally designed to
gather and process gas from the very prolific Oredo field (OML 111) and supply
to the Ihonvbor Power Plant, but the plant has not been completed. The second
phase is billed to come on stream by the end of the first quarter of 2013. That
will bring an additional 100mmscfd from the plant.
gather and process gas from the very prolific Oredo field (OML 111) and supply
to the Ihonvbor Power Plant, but the plant has not been completed. The second
phase is billed to come on stream by the end of the first quarter of 2013. That
will bring an additional 100mmscfd from the plant.
The Phase 2, according the company,
would also see the completion of the liquefied petroleum gas (LPG) component of
the gas plant, which will deliver about 4000 metric tons of LPG to enhance the
drive to get every home to adopt LPG as its domestic cooking fuel as a way to
combat deforestation and environmental pollution arising from the use of
firewood and kerosene.
would also see the completion of the liquefied petroleum gas (LPG) component of
the gas plant, which will deliver about 4000 metric tons of LPG to enhance the
drive to get every home to adopt LPG as its domestic cooking fuel as a way to
combat deforestation and environmental pollution arising from the use of
firewood and kerosene.
The support of the Federal Government
under the leadership of President Goodluck Jonathan has been instrumental to
these achievements, Briggs said, adding that under President Jonathan and the
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, the trend of
asset stripping that was the norm under previous administrations has been
halted. In fact, assets have rather been handed over to it which is partly
responsible for the achievements. The future of NPDC is very rosy and it is
well on its way to actualizing the vision of its founding fathers as a major
player in the upstream sector of the oil and gas sector.
under the leadership of President Goodluck Jonathan has been instrumental to
these achievements, Briggs said, adding that under President Jonathan and the
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, the trend of
asset stripping that was the norm under previous administrations has been
halted. In fact, assets have rather been handed over to it which is partly
responsible for the achievements. The future of NPDC is very rosy and it is
well on its way to actualizing the vision of its founding fathers as a major
player in the upstream sector of the oil and gas sector.
Culled
from The Nation Newspaper, Tuesday, December 18th, 2012.
from The Nation Newspaper, Tuesday, December 18th, 2012.
