\u2026As NNPC\/FIRST JV Secures over $700 million Schlumberger Funding for New
\nFields<\/p>\n
The plan by the Nigerian National Petroleum Corporation to grow the
\nnation\u2019s crude oil reserves to 40 billion barrels by the year 2020
\nreceived a major boost on Thursday with the execution of a tripartite
\nagreement in Abuja.<\/p>\n
The agreement was between the NNPC\/FIRST Exploration & Production Joint
\nVenture and Schlumberger for the development of the Anyalu and Madu fields
\nin the Niger Delta under Oil Mining Licence, OML 83 and OML 85, offshore
\nNigeria.<\/p>\n
Under the agreement, Schlumberger would provide the over $700 million
\ndevelopment cost of the Anyala and Madu fields which would generate 193
\nmillion barrels of crude oil into the current reserves of 37.2billion
\nbarrels and an additional 800 billion cubic feet of gas into the nation\u2019s
\nproven gas reserves which currently stand at 197 Trillion Cubic feet of
\ngas .<\/p>\n
In terms of daily production, the fields will yield 50, 000 barrels of
\ncrude oil per day and 120 million standard cubic feet of gas per day by
\nearly 2019.<\/p>\n
Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr.
\nMaikanti Baru, said the innovative approach to funding JV operations in
\nresponse to the challenging economic environment was novel and aligned
\nwholly with the government\u2019s aspiration to increase crude oil and gas
\nproduction, reserves growth and monetization of the nation\u2019s enormous gas
\nresources.<\/p>\n
He added that apart from serving as a test case for future funding
\nmechanism, the approach adopted was in sync with the realization of the
\ncorporation’s 12 Business Focus Areas (BUFA) which is to ramp up crude oil
\nproduction and reserves growth, amongst others.<\/p>\n
He said the projected increase in production of gas would come in handy as
\nthe Corporation strived to sustain the supply of gas to the existing power
\nplants as well as the planned power projects billed to come on board
\nwithin the period.
\nManaging Director and CEO, FIRST E&P, Ademola Adeyemi-Bero, who signed on
\nbehalf of FIRST E&P, remarked that the partnership between the NNPC\/FIRST
\nE&P JV and Schlumberger would infuse a novel asset development model which
\ncombines FIRST E&P\u2019s local knowledge and market position as an indigenous
\noperating company, with Schlumberger\u2019s financing and broad technical
\ncapabilities.<\/p>\n
He added that the joint project team would strengthen FIRST E&P\u2019s project
\ndelivery abilities and the model would offer the Upstream subsector a
\ncredible alternative funding and technical partnership model for growing
\nproduction and adding reserves.<\/p>\n
On his part, Patrick Schorn, Vice President, Schlumberger, who signed on
\nbehalf of Schlumberger traced the advent of the multi-national oil fields
\nservice company in Nigeria to the first commercial oil find in Oloibiri
\nwhen Schlumberger played a role in Shell\u2019s drilling effort.
\nHe noted that the partnership with NNPC and FIRST E&P would provide
\nSchlumberger the opportunity to leverage on its reservoir knowledge,
\noilfield services and project management expertise to lower development
\ncosts and maximize value for the partners.<\/p>\n
The OMLs 83& 85 are located in shallow waters 40 km offshore in the Niger
\nDelta, NNPC holds 60% interest in the licences while, FIRST E&P, the
\noperator of the JV, holds the remaining 40% interest. Apart from providing
\nfunding for the development of the fields, Schlumberger would also provide
\nother Oilfield Services to the JV on a limited exclusive basis. A joint
\nproject team would be established to drive technology transfer whilst
\nleveraging on the global technical expertise of Schlumberger and the
\nextensive local knowledge of the JV partners.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u2026As NNPC\/FIRST JV Secures over $700 million Schlumberger Funding for New Fields The plan by the Nigerian National Petroleum Corporation to grow the nation\u2019s crude oil reserves to 40 billion…<\/p>\n","protected":false},"author":1,"featured_media":53100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-58345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n