Uche Usim, Abuja
Green Energy International Limited (GEIL), the operator of the Otakikpo Marginal Field in OML 11 Rivers State, has entered into a Memorandum of Understanding (MoU) with a consortium of international companies including International Bank, Crude Oil Off-Taker and EPIC Contractor for the second phase development of the field involving a total package of $350 million.
The deal, expected to make the Otakikpo field a crude processing and exporting hub in the Eastern Niger Delta, is conceived to unlock the potential of other commercially stranded marginal fields in the area.
The second phase development involves the drilling of additional wells at Otakikpo Marginal Fields which will significantly increase the field production from the present 6000bopd to 20,000bopd and the expansion of the processing facilities from 12,000 to 50,000bopd to adequately handle production from other fields.
The project also involves the construction of 1.3 million barrels onshore terminal and a 20km export pipeline and crude oil loading system for efficient export of the expected production.
Commenting on the conclusion of the MoU, GEILChairman, Prof. Anthony Adegbulugbe, described the deal as a major milestone in the oil and gas industry, particularly for the marginal field coming on the heels of a successful commencement of production in 2017 and recent conclusion of the interpretation of the 3 D seismic data acquired by the company to maximise the Otakikpo field opportunities.
He said the stakeholders are excited that the financial package brings it close to realisation, the vision of the company as an integrated energy company that ensures optimal utilisation of hydrocarbon resources for the benefit of the nation and local communities around the field. He said that the company is sure to benefit from the consortium’s excellent international project and field management experiences and expertise. Adegbulugbe thanked all the partners in the consortium for working harmoniously together to advance the project up to this stage.
On the issue of gas monetisation, Adegbulugbe stated: “We are poised more than ever before to develop the oil and gas field with the Small Scale Gas Utilisation Project (SSGUP) as the backbone of field development activities to ensure compliance with the zero gas flare policy of the Federal Government”.
The Factory Acceptance Test (FAT) of the 12mmscfd gas processing plant for which the approval to construct (APC) was received from the Federal Government was concluded recently at the facilities of the Chinese company -Peiyang Chemical Equipment Co. Ltd (PCC), the original equipment manufacturer (OEM) .
Adegbulugbe commended the DPR for its prompt support in the conceptual designs and implementation of the projects for the development of the field, adding that the initiative of the company, which has the potential of bringing over $350 million direct foreign investment into the economy, will be a boost to the present administration’s drive for economic growth and investment inflows into the country.
