…set to Boost Output With Umugini Pipeline Completion
By Yemie ADEOYE
and production division, Oando Energy Resources (OER), has completed the 45,000bbls/d, 51km Umuginni pipeline located in south-eastern Nigeria. The pipeline provides an alternative evacuation route for crude oil produced from the Ebendo Field through the Trans Forcados export pipeline ensuring flow production from is maximised and further revenue streams generated.
Following the successful drilling of Ebendo wells 5, 6, and 7 over the last year, oil production capacity within OML 56 has grown to 7,140boepd gross for OER and Energia Limited, the operator of the asset. However, export had been restricted to 3,093 bopd via the Agip operated Kwale-Brass NAOC/JV infrastructure, in which OER currently has a 20% interest through the recent $1.5Bn acquisition of ConocoPhillips Nigerian Oil & Gas Business.
Since the production of first oil in 2009, OER, in conjunction with Energia, has spurred the growth of the Ebendo field by 400% from 1,600 bopd to 8,050 bopd in 2014 with 4 additional wells.
The completion and commencement of operations on the Umugini pipeline ensures the Ebendo field can now produce at an increased capacity of 11,250 bopd via the 12” evacuation route to NPDC/Shell’s Eriemu station to the Focados terminal. This complements the existing 2,500 bopd evacuation via the cluster GGF and Agip Kwale station to the Brass terminal.
Commenting, Pade Durotoye, CEO Oando Energy Resources said: “We are extremely delighted with the achievement of this key milestone. The completion of the Umugini pipeline will enable us fully maximise the value of our investments to date on the asset, and provides the latitude for further profitable development of prospects and resources identified in Ebendo.”
Ebendo is located onshore, in the central Niger Delta, approximately 100 km north-west of Port Harcourt and covers an area of 65 km2 (16,062 acres). The License includes two fields, Ebendo and the Obodeti field. Oando Energy Resources holds a 42.75% working interest in the field.
With Phase 3 development expected to commence in Q1 2015, the completed Umugini pipeline effectively doubles the throughput from Ebendo field by 3,727, and as crude oil prices fall, there is an added incentive for producers to drive production volumes to sustain revenue from sales.