Economy

SPDC’s oil production hits 514,000 bpd – Report

SPDC’s oil production hits 514,000 bpd – Report
Written by Maritime First

…As SNEPCo MD says energy players need to collaborate for local content***

The Shell Petroleum Development Company (SPDC) says it has grown its oil output to an average of 514,000 barrels per day (bpd) and developed additional capacity to produce more.

Mr Osagie Okunbor, the Chairman of Shell Companies in Nigeria disclosed the production data in the oil firm’s 2020 briefing notes made available to newsmen on Wednesday in Yenagoa.

According to the publication, SPDC achieved the feat in 2019 when its production rose more than 10 per cent to 514,000 barrels of oil equivalent per day (boe/d) due to enhanced exploration and production activities.

On gas production, the SPDC stated it fed the domestic market and to the export market through the Nigeria Liquified Natural Gas (NLNG) plant, adding that it supplied approximately 50 per cent of the NLNG plant capacity.

The company’s gas feed to the NLNG facility in Bonny Island in Rivers comes largely from the Gbaran-Ubie and Soku plants in Bayelsa and Rivers.

According to the publication, gas production from Soku facility increased from 100 Million standard cubic feet per day (MMscf/d) in 2018 to 350MMScf/d in 2019.

The SPDC also stated that the improved oil output was due to the addition of 106 producing wells within its oil blocks in the Niger Delta.

The oil firm said that within the period under review, the Trans Ramos Pipeline which conveyed crude to its Focados oil export terminal was re-opened.

It said that the Gbaran-Ubie gas plant in Yenagoa, achieved peak production with 175,000 barrels of oil equivalent per day.

SPDC said it had the largest oil production asset in the country and operated a leased area of 31,000 square kilometres from which it produced while working to increase capability by investing in exploration and production activities.

Also read:  Chevron invests $1.45bn in Nigerian content development – Report

“The SPDC JV’s assets include 340 producing oil wells consisting 97 land, 181 west and 62 central assets, 56 producing gas wells (10 land, three west and 43 central assets). A network of approximately 4,000 km of oil and gas pipelines and flow lines.

“The assets include 10 gas plants, two major oil export terminals, Bonny and Focados and an additional export facility a shallow water Floating Production Storage and Offloading Vessel christened `Sea Eagle’ currently stationed off Bayelsa coastline, One power plant,” the publication said.

In another development, Mr Bayo Ojulari, the Managing Director, Shell Nigeria Exploration and Production Company Ltd., (SNEPCo) says collaboration amongst indigenous players in the energy sector will increase their local content participation.

Ojulari said this while speaking at the 12th Edition of annual PSRG-RICHARDSON Health, Safety, Security and Environment (HSSE) Forum held virtually in Yenagoa on Wednesday.

The forum, which held as a Webinar due to health protocols induced by the COVID-19 pandemic, had the theme entitled: ”Nigerian Content Development: Facing the Future”.

He said that industry players and companies ready to be creative and collaborative had immense business opportunities in providing quality solutions to the challenges that the oil and gas industry faced in implementing Local Content Act.

According to him, while there is increasing support, regulations are going to get stricter to ensure full compliance by companies.

“There are areas where we can quickly close gaps identified in local content implementations,” he said.

Ojulari stressed the need for collaboration among Nigerian companies as a reliable way to harness the different skills that will grow the industry.

“Collaboration is key to unlocking value. Don’t do it all alone, you always benefit from partnering,” he said.

Ojulari reiterated the need to reinforce established processes and framework that would lead to achieving the goals of Nigerian Content.

He reminded indigenous companies to continue to invest in improving the quality of their products and services since, “we cannot implement local content at the expense of quality’’.

“Don’t compromise on quality or safety. Instead, have a system in place to manage both quality and safety.

“With the extension of the implementation of Nigerian Content to other industries, like mines, power and information technology, the idea of Nigerian content has come to stay.”

Ojulari projected that there was more potential for success in these industries if the learnings from the pioneering example of the oil and gas industry were applied.

“The oil and gas industry is very complex and highly technical. With the success achieved in the oil and gas industry, other industries have good example to follow,” he said.

Several leading industry players and representatives from Chevron, Total and Nigerian Content Development and Monitoring Board (NCDMB), who participated at the virtual seminar unanimous agreed that “local content is a marathon and not a sprint”.

 

 

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Maritime First