Oando Energy Resources, a wholly-owned subsidiary of Oando Plc focused on oil and gas exploration and production in Nigeria, has disclosed that it has budgeted $135.1m (N26bn) in capital expenditures for crude oil and gas projects this year.
The company, while announcing its financial and operating results for the year ended December 31, 2014, said it would fund essential projects this year and prudently utilise capital in recognition of the current crude oil environment.
OER estimated that $35.6m would be expended on crude oil-related projects and $24.1m on gas projects in the Oil Mining Lease 60 to 63 areas, which it acquired last year.
It said planned oil and natural gas projects consisted of drilling and completing new wells, along with asset integrity projects and enhancements to natural gas facilities and pipelines.
The company had on July 2014 completed the acquisition of the Nigerian upstream oil and gas business of the United States-based ConocoPhillips for a total cash consideration of $1.5bn.
OER said it had budgeted $67.1m for OML 125 (Abo field), adding that the planned expenditures included gathering system construction projects, completing and hooking up of Abo 12 upper, drilling Abo 13, along with safety projects and extending the life of the floating production, storage and offloading facility.
The company said it would spend $7.7m for facility and pipeline repairs on OML 56 (Ebendo field) in the year.
It said $0.6m had been budgeted for facility enhancement on OML 13 (Qua Ibo field), which commenced production in January 2015, from the field’s C4 and D5 reservoirs.
Source: Punch
