The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd., have resumed production crude oil in Awoba Field, River State, for the first time since 2021.
Olufemi Soneye, the spokesperson for the NNPC, made this disclosure in a statement on Tuesday in Abuja.
The statement noted that the Awoba field last produced oil for the Bonny Terminal in 2021 and was ultimately shut down in February 2022 due to problems with evacuation and crude oil theft.
Soneye mentioned that since the reactivation of the Awoba field by NNPC Ltd and its partners on April 13, 2024, the field’s production has averaged 8,000 barrels per day.
Moreover, he said that the field is anticipated to reach a steady output of 12,000 barrels per day once fully ramped up within 30 days.
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According to Soneye, Awoba is also expected to significantly boost gas supply to the power sector and other gas-based industries.
- “Keen on optimising production from the nation’s hydrocarbon assets to boost revenues and meet the nation’s OPEC production quota, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd., have restarted production from the Awoba field which last contributed production to the Bonny Terminal in 2021 and was finally shut down in February 2022 due to evacuation issues and crude oil theft.
- “Since the restart of the Awoba field by NNPC Ltd and it partners on April 13, 2024; production from the field has averaged 8,000 barrels per day and is expected to plateau at 12,000 per day at full ramp up within 30 days.
- “Awoba is also expected to significantly boost gas supply to the power sector and other gas-based industries.
- “The Awoba Unit which straddles OMLs 18 and 24 is located in the mangrove swamp south of Port Harcourt, Rivers State. Both OML 18 and OML 24 assets are under the management of the NNPC Upstream Investment Management Services (NUIMS),” Soneye said.
Other Strings of Production Reactivated
Speaking further, NNPC noted that the firm has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production.
The oil company revealed that in addition to the recent initiation of production at the Madu Field by the NNPC Ltd/First E&P JV, it has successfully resumed production at OMLs 29 and OML 18 in late 2023, which have consistently added an average of 60,000 barrels per day to the national production output since their restart.
- “NNPC Ltd. Has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production.
- “Besides the recent start of production at the Madu Field by the NNPC Ltd/First E&P JV, the company has achieved the restart of production at OMLs 29 and OML 18 in late 2023 which have steadily contributed an average of 60,000bpd to the nation’s production output since their restart.
- Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Mallam Mele Kyari, ascribed the achievement to the President Bola Ahmed Tinubu administration’s success in providing enabling operating environment for businesses to thrive,” the statement read.
What you should know
- Nigeria’s crude oil production for March dropped to 23 million bpd according to OPEC’s monthly oil market report. The figure makes it the third consecutive month the country’s average oil production will fall below the budget benchmark of 1.78 million bpd.
- In January, Nigeria’s average daily oil production stood at 1.427 million bpd while that of February was lower at 32 million bpd. The dismal oil production for March led to Nigeria’s dethronement by Libya as Africa’s biggest oil producer.
- Speaking on the issue, the Minister of state for Petroleum Resources, Sen. Heineken Lokpobiri attributed the low crude oil production in the first quarter of the year to issues with the Trans-Niger pipeline and maintenance activities by some oil companies.
- The Minister in a statement said the issues have been resolved and the country would soon get to churning out 1.7 million barrels of oils daily.
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