The Nigerian Petroleum Development Company, NPDC, has revealed plans to raise the country’s crude oil output to 500,000 barrels per day by the year 2020.
At the moment, the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) produces about 180,000 bpd.
A statement issued yesterday by NNPC said its flagship subsidiary was poised to grow its equity production by 2019, it should have hit 400,000 bpd.
Managing Director of NPDC, Mr Yusuf Matashi, who disclosed this in Benin, said the planned increase in the company’s equity production was due to the ongoing transformation in NNPC.
Mr Matashi said having attained the position as fifth largest Exploration and Production Oil Producer in the Nigeria, the NPDC was poised to efficiently manage its portfolios to achieve the new target.
“The NPDC has 55 percent equity in nine blocks of Oil Mining Lease (OML) 4, 26, 30, 34, 38, 40, 41, 42 and 55; Non-equity operations in three blocks of selected NNPC Joint Venture fields; 60 percent participatory interest in four blocks of OMLs 60, 61, 62 and 63 and 100 per cent ownership of seven blocks of OMLs 11, 13, 64, 65, 66, 111 and 119.
“In a nutshell, the company is involved in 29 concessions which comprises 22 OMLs and seven Oil Prospecting leases,” Mr Matashi submitted.
He explained that the company had varied interests in seven deep-water concessions and successfully executed a Global Memorandum of Understanding (GMoU) with communities in OMLs 30 and 34, adding that NPDC achieved a major feat by successfully drilling and completing five horizontal wells in nine months in OML 26, leading to production of an additional 7, 000 bpd.
The MD enthused that NPDC had successfully turnaround OML 40 asset from 0 bpd to 12, 000 bpd which underlined the company’s rising profile as the 7th largest owner and operator of Floating Production Storage and Offloading (FPSO) in Nigeria.
Mr Matashi added that NPDC also carried out some intervention activities which led to the peak production of approximately 10,000 bpd in OML 65 in June, 2017.
Mr Matashi declared presently, the NPDC was the biggest and largest gas producer in the country and was also the highest supplier of gas to the domestic market.
“NPDC aggressive gas pursuit since 2009 has also raised the company’s profile as the highest single supplier of gas to the domestic market with an average of 700 million standard cubic feet per day. The Utorogu Non-Associated Gas 11 plant was also completed recently adding 150 mmscfd; the Oredo 2 gas plant also adds 100 mmscfd and the successful re-entry of Odidi which led to an addition of 40 mmscfd of gas indeed represents a major achievement for the company and a step forward to achieving NPDC’s aspiration to become a serious global player in the E & P industry,” Mr Matashi averred.
The MD maintained that the NPDC as a responsible and responsive company had awarded scholarship to over 6,000 indigent members of its host communities which traversed host states, renovated and built block of classrooms, provided classroom furniture and offered employment opportunities in its areas of operation as a means of empowering the communities.
Mr Matashi applauded the Federal Government, the NNPC Top Management Committee (TMC) and the NNPC management for helping the company to take ownership of OML 13, disclosing that First Oil from that OML was expected by the fourth quarter of the year.
He stated that the greatest challenges of the company were the reoccurring infractions on its facilities and the incessant uprisings by some members of its host communities, adding that a holistic plan was being worked out to address the teething challenges.
