Investment company, Heirs Holdings, has commenced work on Oil Mining Lease (OML) 17, in which it acquired a 45% stake a year ago.
While the Nigerian National Petroleum Corporation (NNPC) owns a 55% stake in the oil field, Heirs Holdings, last year (2021), acquired a 45% stake of the onshore property from Shell Petroleum Development Company (SPDC), Total E&P, and Eni.
Having issued a tender for work on the Elelenwa multi-phase pump gathering station, Heirs Holdings said it is seeking interested and pre-qualified contractors to carry out the work under engineering, procurement, installation, and commissioning (EPIC) demands.
Demands from interested contractors
Other things required from the contractors to carry out, include the scope that covers work through a pump gathering station for well fluids from the Elelenwa West manifold and flow to Agbada-1 flow station for processing.
BizWatch Nigeria understands that the Agbada field is in the middle of the license, while Elelenwa is in the south, close to Port Harcourt area of the Niger Delta.
More so, the scope includes a mini front-end engineering and design (FEED), followed by a detailed engineering design. Work will also include the provision of a schedule, site surveys, and power generation. The supplier is also expected to provide two years of operational spares, deliver the pump and other facilities to the site, carry out performance testing, and finally hand over.
Qualifications for interested bidders
The company requires interested bidders to be pre-qualified in the NipeX joint qualification system database. They must also submit details on how they would comply with local content requirements.
Heirs Holdings maintained that bids must include commercial and technical tenders at the same time.
About the oil field (OML 17)
OML 17 is a large onshore license that includes the northern half of Port Harcourt, the largest city in the Niger Delta region of the country. It extends from the low-lying swamp northwards into drier terrain where the operating conditions are easier.
A report has it that there are 15 oil and gas fields on OML 17, four of which are producing. Crude is exported through the Trans-Niger Pipeline, to the Shell-operated Bonny oil and gas terminal.
According to the report published by Wood Mackenzie, a global energy group, OML 17 produces 30,000 barrels of oil equivalent per day. It has 2P reserves of 1.2 billion boe, with another 1bn boe of exploration potential. Although, should the right infrastructures be put in place, the oil field could produce 200,000 BPD of oil and 300 million cubic feet per day of gas.
