Petroleum Africa
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Thursday, September 17, 2015
Offshore Nigeria, ExxonMobil’s local unit Esso Exploration and Production Nigeria saw the start of oil production from the Erha North Phase 2 project. This second phase of the Erha North saw its oil flow ahead of schedule.
The project is a deepwater subsea development located 60 miles offshore four miles north of the Erha field, in 3,300 feet of water. The Erha North Phase 2 project includes seven wells from three drill centers tied back to the existing Erha North FPSO, reducing additional infrastructure requirements.
The project is estimated to develop an additional 165 million barrels from the currently producing Erha North field. Peak production from the expansion is currently estimated at 65,000 bpd of crude and will increase total Erha North field production to approximately 90,000 bpd.
“Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise,” said Neil W. Duffin, president of ExxonMobil Development Company. “We are able to create additional shareholder value by optimizing existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”
Duffin said the ahead-of-schedule startup was supported by strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment, facilities and offshore installation.
“These contracts are bringing direct and indirect benefits to the Nigerian economy through project spending and employment, consistent with project objectives,” Duffin said.
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