ExxonMobil targets 1.0 mm bpd oil output by 2010

Dec 14, 2004 01:00 AM

US oil giant ExxonMobil, second largest crude oil producer in Nigeria, has disclosed plans to raise crude oil output to 1 mm bpd by 2010 and end gas flaring by 2006, two years ahead of government 2008 target deadline.
The company has also set local content milestones for the Erha field development project as part of efforts to meet Federal Government's Nigerian content initiative aimed at increasing local participation in the sector.

Mr John Chaplin, the Chairman and Managing Director of ExxonMobil in Nigeria made the disclosure while speaking at the Subsea System Integration Test (SIT) for the Erha field development project being managed by Esso Exploration Production Nigeria Limited (EEPNL), a subsidiary of ExxonMobil, in Port Harcourt.
"We plan to end gas flaring from our fields by 2006 compared to the government's deadline of 2006, and to raise production to some 1.0 mm bpd," said Chaplin. The company currently produces 600,000 bpd, to rank second behind Shell, as Nigeria's biggest oil producer.

The SIT Centre is for the testing off all subsea facilities and equipment for the $ 2.6 bn Erha deep offshore field. Mr Chaplin said that the centre is the first of its kind not only Nigeria, but in the whole of West Africa, adding that setting up the facilities was part of the company's objective to promote technology transfer and increase local content.
"This is the first sub-sea SIT to be performed in West Africa and it will serve as a regional facility for future subsea SITs and subsea work for deepwater development projects," he said.

The SIT is a surface test of integrated subsea facilities components, to ensure proper integration prior to their deployment in 1, 200 meters beneath sea level. The Erha sub-sea Systems Integration Test (SIT) is the first ever such tests to be performed in West Africa.
The company disclosed that Erha Subsea SIT is consistent with the national objective and EEPNL's commitment to promote technology transfers and maximize local content development. With EEPNL's specifications and support, significant investment was made to develop Nigeria's technical capabilities to carry out subsea Systems Integration Test (SIT) and fabrication of subsea manifolds and jumpers in country.

It is expected that following this development, the Willbros yard in Port Harcourt, will now serve as a regional facility for future SITs and subsea work for other West African and global deepwater development projects. This will positively impact on opportunities for local employment, contract awards as well as boost the country's economy.
The Erha oil field, located in Oil Prospecting License (OPL) 209 and operated by ExxonMobil subsidiary, Esso Exploration and Production Nigeria Limited, will raise Nigeria's crude oil production by 150,000 bpd and reserves by 560 mm barrels when it comes on stream by first quarter of 2006.

Also speaking at the commissioning ceremony, NNPC Group Managing Director, Funsho Kupolokun, stressed government's commitment to raise local content in the oil and gas industry to 45 % by 2006, and commended Mobil for demonstrating the willingness to cooperate with the government in achieving this objective.
Kupolokun said, having provided the enabling environment through deliberate policies, the Federal Government expects support from operators for the transformation of the sector, which aims to impact positively on the lives of Nigerians.

"We in the NNPC have always maintained that developing Nigerian content in oil and gas industry is an achievable goal," he said.
"The thrust of the transformation process currently going on in the oil industry in Nigeria is aimed at building capacity in all aspects of oilfield development. One way the service companies can support this process is by ensuring meaningful training and involvement of Nigerians in their operations," he added.

Source: Vanguard Media
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