By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Nigerian oil and gas exploration and production firm, Oando Energy Resources Inc. (OER) said on Monday it has increased production in its Qua Iboe field, and associated crude delivery and sales infrastructure, with commercial production at 2,150 boepd Gross.
OER said the commercial oil production from the field’s reservoirs has now commenced at an initial rate of 2,150boepd gross to the partners, the company said in a statement.
According to the Nigerian oil and gas exploration and production firm, the crude processing facility was commissioned in the fourth quarter (Q4) of 2014 but commercial production was delayed until the completion of the associated cluster crude delivery and sales infrastructure into the Qua Iboe Terminal.
“We are delighted to have achieved this milestone, having taken this field through the full cycle of asset development, from drilling to facility engineering, construction and commissioning, and also increasing our organic production contribution from our portfolio,” said Pade Durotoye, CEO Oando Energy Resources.
“We will now be focusing our attention on maturing the potential of this field through seismic acquisition and interpretation, and a possible multi-well drilling program. We hope the Qua Iboe field will follow in the footsteps of our successful Ebendo field, where production has increased from 900bopd (gross) at inception to over 7,500bopd (gross) through the identification and drilling of new reservoirs in the field,” Durotoye added.
OER says it identified the asset in 2012 and an agreement was reached with Network Exploration and Production Nigeria Limited (NEPN), for OER to technically lead and fund certain aspects of NEPN’s costs until first oil.
The company said consequently, post recovery of all loan repayments, its entitled to 90 percent of NEPN’s sales proceeds from its 60 percent share of crude oil production until NEPN’s obligation is paid in full, with OER earning an additional 10 percent fee on the funded amount.
The Nigerian oil and gas exploration and production firm holds a 40 percent working interest in the field. “In its capacity as technical services provider, OER, together with the operator and 60 percent owner, NEPN brought the field from conceptualisation, through development, to first oil delivery,” the statement noted.
Qua Iboe is located at the mouth of the Qua Iboe River in the eastern Niger Delta and covers an area of 14 km2 (3,459 acres). The field is immediately adjacent to the ExxonMobil Qua Iboe Terminal.
