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CNOOC, Gas Group JV plans $150million investment in rig assembly

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ABUJA – Gas Group and China National Offshore Oil Corporation (CNOOC) Energy plan to invest additional $150 million (about N24 billion) in downhole tools, logistics trucks, machine shop and rig assembly in Nigeria.

Already the group has invested $50 million (about N8 billion) in the project.

The initiative of the company would empower Nigerians and global oil industry. It will create over 5,000 employment opportunities in its rig assembly, oil field services in the country.

Gliffeth Wonuigwe ,the group chief executive officer, Gas Group which is into assembling oil rigs and ancillary equipment in the country disclosed during a tour of the company’s Warehouse at Kidney Island in Port Harcourt Rivers State by officials of the Nigerian National Petroleum Corporation and executive members of the International Oil Companies (IOCs) that his company has more plans to make the operation of oil companies in the upstream more seamless than what it is now by making available all that is required to make their operations less stressful.

CNOOCHe explained that the joint investment started with the signing of a strategic integrated agreement with CNOOC in Tiangin China 2012. The agreement signed by between the two companies covers joint operation of downhole tools stocking, fishing and well completion services and logistics.

The venture is being executed through First Atlantics Drilling Services Limited, a subsidiary of Gas Group in collaboration with CNOOC Energy Group. CNOOC group is a Chinese group with over 30 billion dollar revenue in exploration and production and associated integrated services.

“The Second Tier is the investment of $150 million in rig assembly plant at Kidney Island eastern area. The service will be executed by Houston based IDE and Load craft,” he announced.

Gasgroup/CNOOC Energy through First Atlantics Drilling and support Service Limited is to create a niche in oilfield services with effective stocking and sales of downhole tools, rig movement, well completion, decommissioning, haulages of heavy oilfield maintenance equipments, drilling services, provision of cranes services, forklifts, casing and tubing among others. It’s an integrated support services located in Kidney Island a mini Port design for major logistic support for the oil and gas industry.

“We have invested over $50 million in the first phase as you can see physically on ground which informed this facility tour. We took a delivery of 10 million dollar worth of tools and trucks and another shipment of 40 million dollars will arrive at Nigerian ports at the end of March,” he said.

He said this strategic relationship was re –enforced in Beijing during President Good luck’s meeting with the Chinese president Shin Jin Pin last July to strength Nigeria/Chinese bilateral relationship.

“So, we hope that in the next six months, the milestone we are going to record will begin to look like a mini Houston,” he assured.

During the inspection of the facility, Fidel Pepple, the group general manager, National Petroleum Investment Management Services (NAPIMS) who represented Abiye Membere (GED E&P) said the tour of the JV is the beginning of exciting activities in the Nigerian oil and gas industry. He pointed out that there is need to encourage companies adding value to the implementation of Nigerian Content in the oil and gas industry. “I am here to participate in the facility opening because Gas group has been adding value to the oil and gas industry in terms of consistent empowering of Nigerians through the technical partners by providing expertise for the transfer of technology to Nigerians,” he said.

Pepple urged IOCs to support the investment made by Gas Group in-country by patronising the logistics base of the company at the Kidney Island.

“For Nigerian companies to grow so that we can develop adequate capacity in-country for all projects, it is necessary for the IOCs to support all Nigerian companies,” he added.

– BUSINESS DAY

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Gas

Platform Petroleum targets a billion-dollar investment

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Platform Petroleum

Announces ambitious expansion plans

 

Platform Petroleum says the company is targeting a billion-dollar investment as it announces an ambitious strategic plan to bring 3 marginal fields into production by 2025, with a target of 10,000 barrels of oil and at least 50 billion standard cubic feet of gas per day.

Speaking on the sidelines of the 2024 Offshore Technology Conference (OTC) in Houston, USA, Chief Dumo Lulu-Briggs, Chairman of Platform Petroleum said that the company has scheduled a roadshow in London this June 2024 to raise extra funding to finance their ambitious expansion plans.

“The upcoming roadshow aims to attract equity partners and prepare for future opportunities, targeting a billion-dollar investment. We are seeking partners ready to invest in Nigeria’s oil and gas potential.

Our goal is to showcase the country’s vast opportunities and its potential to international investors” Lulu-Briggs said.
Platform Petroleum’s roadshow in London will highlight the company’s efficient production, upgraded flow stations, increased capacity, and achievements in nearly zero emissions.

With about one percent gas flare currently, Platform aims for zero gas flares by the last quarter.

“Nigeria is a vast market, and Platform Petroleum is thinking big. With the government’s ambitious plans, such as the Lagos-Calabar coastal line, Platform is poised for growth; pushing itself to the next level, building on a strong foundation and following Seplat’s successful precedent”, Lulu-Briggs said.

Despite being a small company, he emphasized that Platform Petroleum has demonstrated significant success and efficiency, showcasing that smaller oil and gas entities can indeed achieve remarkable feats adding that he believes that the company deserves recognition and more assets.

“Platform Petroleum is ambitious, aspiring to become a tier-1 company akin to international oil companies (IOCs) or a tier-2 company like Seplat. Interestingly, Seplat originated from Maurel & Prom, Shebah Petroleum, and Platform Petroleum, and today stands as a major player in the industry.

This history underlines Platform’s potential for substantial growth”, Lulu-Briggs said.
Furthermore, the Platform Petroleum Chairman said that the Offshore Technology Conference (OTC) is a crucial event for promoting Nigeria’s significant market potential.

“Partnering with the Petroleum Technology Association of Nigeria (PETAN) at OTC is key to attracting investment. The current proactive government understands the necessity for economic growth, and Platform is prepared to leverage every opportunity in the oil and gas industry to contribute to this expansion”, he concluded.

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NNPC JV Unveils New Crude Oil Grade ‘Nembe’, Commences Exports With 1,900 Barrels

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Precious ADELOLA

The NNPC/Aiteo Joint venture has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.

 

The announcement of the Nembe Crude Oil Blend, produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), was made at the ongoing Argus European Crude Conference in London, on Tuesday.

 

OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration & Production Ltd, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.

 

NNPCL Boss, Engr. Mele Kyari

The Nembe Crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.

The unique selling point of the Nembe Crude Oil grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.

The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands. With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.

 

With the NNPC-Aiteo OML 29 JV back on-stream, Nigeria now boasts of an additional crude oil export of 2 Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly.

 

This remarkable achievement signals the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

 

The terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two (2) Million Barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).

 

It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation.

 

Currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, has now been resolved through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.

 

The Argus European Crude Conference 2023 in London is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets. The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another.

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Business

NNPCL, NCDMB, Oil Majors Agree Improved Efficiencies

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Modupe Asudo

Major players in the oil and gas sector in Nigeria led by the Nigerian National Petroleum Company Limited (NNPCL) have covenanted to optimise operations by reducing contracting cycle to not more than 180 days.

A statement issued by the company disclosed that the Memorandum of Understanding (MoU) to this effect was endorced on Monday in Abuja at the company’s head office.

Other parties to the the contract include, the Nigerian Content Development and Monitoring Board, (NCDMB) and international oil companies.

Biztellers reports that an optimised contracting cycle was expected to improve the ease of doing business, reduce cost and drive efficiency, which would eventually translate to production growth, increased revenues, and ultimately improved profitability.

In addition, the MoU was expected to contribute significantly to the double-digit economic growth rate agenda of the Federal Government and generate value for all stakeholders, including investors, companies, host communities and Nigeria.

Notable elements in the framework of the MoU, going by the statement, included a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively.

This was in contrast with the current best effort performance of 327, 333, and 185 working days respectively.

According to Group Chief Executive Officer, NNPCL, Mele Kyari, signing the agreement portends exciting times for Nigeria’s oil and gas industry, in addition to standing as a bold testimony that the company was plunging into the future of hope, productivity and success.

Kyari, represented at the occasion by Executive Vice President, Upstream, NNPCL, Oritsemeyiwa Eyesan, pointed out that with oil and gas as the bedrock of Nigeria’s economy, there was need to get the contracting process in the Industry right so as to get the economy back on track.

In his remarks, Executive Secretary, NCDMB, Simbi Wabote, described the MoU as a way forward and a critical step towards enhancing the nation’s crude oil production.

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