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Thursday, July 27, 2006
Mobil Producing Nigeria Unlimited (MPN), an affiliate of ExxonMobil announced it has started up the East Area Additional Oil Recovery (AOR) project located 17 miles offshore Nigeria.
The project’s aim is to re-inject natural gas to slow down normal field production decline from the East Area reservoirs and to increase oil recovery from oil Blocks OML 67 and OML 70. The project is expected to produce 530 million gross barrels and 120,000 bpd.
The AOR project will include a gas compression complex, seven associated platforms, and crew living quarters. In addition, over 161 km of new pipeline for gas gathering and distribution will be included. The total cost of the project is pegged at around $1.3 billion.
ExxonMobil has had three major facilities start-ups in Nigeria this year. The Yoho project is currently producing about 160,000 bpd and injecting around 110 million cubic feet of natural gas daily.
The other project, the deepwater Erha field, started production in March of this year. The $3.5 billion Erha and Erha North developments will consist of 32 sub-sea wells tied to a Floating Production Storage and Offloading (FPSO) vessel. As expected the total production output is 190,000 bpd and natural gas production expected to be about 300 million cubic feet a day, which will be re-injected for reservoir management.
Stuart McGill, senior vice president of Exxon Mobil Corporation said, "Liquids production that ExxonMobil affiliates either operate or participate in offshore Nigeria currently exceeds 1.1 million barrels per day. The Yoho, Erha and AOR developments are important new supplies in helping our company meet growing global oil demand. All three projects started up on schedule and within facilities budgets, reflecting ExxonMobil’s global project execution and management capabilities. These projects represent state-of-the-art technology application and underscore our continued commitment to supporting Nigeria in meeting its goals to promote national business development and capacity growth."
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