The Nigerian National Petroleum Corporation, NNPC, on Thursday, June 29,sealed a tripartite agreement in Abuja, in a bid to grow the nation’s crude oil reserves to 40 billion barrels by the year 2020.
The agreement was between the NNPC/FIRST Exploration & Production Joint Venture and Schlumberger for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licence OML 83 and OML 85, offshore Nigeria.
Under the agreement, Schlumberger would provide the over $700 million development cost of the Anyala and Madu fields which would generate 193 million barrels of crude oil into the current reserves of 37.2billion barrels and an additional 800 billion cubic feet of gas into the nation’s proven gas reserves which currently stand at 197 Trillion Cubic feet of gas .
According to a statement by the NNPC, OMLs 83 and 85 are located in shallow waters 40 km offshore in the Niger Delta. NNPC holds 60% interest in the licences while, FIRST E&P, the operator of the JV, holds the remaining 40% interest. Apart from providing funding for the development of the fields, Schlumberger would also provide other Oilfield Services to the JV on a limited exclusive basis.
In terms of daily production, the fields will yield 50, 000 barrels of crude oil per day and 120 million standard cubic feet of gas per day by early 2019.
Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, said the innovative approach to funding JV operations in response to the challenging economic environment was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetization of the nation’s enormous gas resources.
Managing Director and CEO, FIRST E&P, Ademola Adeyemi-Bero, who signed on behalf of FIRST E&P said that the partnership between the NNPC/FIRST E&P JV and Schlumberger would infuse a novel asset development model which combines FIRST E&P’s local knowledge and market position as an indigenous operating company, with Schlumberger’s financing and broad technical capabilities.
On his part, Patrick Schorn, Vice President, Schlumberger, who signed on behalf of Schlumberger noted that the partnership with NNPC and FIRST E&P would provide Schlumberger the opportunity to leverage on its reservoir knowledge, oilfield services and project management expertise to lower development costs and maximize value for the partners.
