ExxonMobil commences oil production at Erha North field
Esso Exploration and Production Nigeria Limited has commenced oil production ahead of schedule at the Erha North Phase 2 project, offshore Nigeria.
Peak production from the expansion is currently estimated at 65,000 barrels of oil per day and will increase total Erha North field production to approximately 90,000 barrels per day.
The Texas-based Exxon Mobil Corporation, which made this disclosure yesterday in a statement, said that the Erha North Phase 2 project is a deepwater subsea development, located 60 miles offshore Nigeria in 3,300 feet of water and four miles north of the Erha field, which has been producing since 2006.
According to the company, the Erha North Phase 2 project includes seven wells from three drill centers tied back to the existing Erha North floating production, storage and offloading vessel, reducing additional infrastructure requirements.
It stated that the project is estimated to develop an additional 165 million barrels from the currently producing Erha North field.
President of ExxonMobil Development Company, Neil W. Duffin, noted that executing successful projects such as Erha North Phase 2 ahead of schedule and under budget is as a result of ExxonMobil’s disciplined project management approach and expertise. “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.
ExxonMobil expects to increase its global production volumes this year by 2 percent to 4.1 million oil-equivalent barrels per day, driven by 7 percent liquids growth. The volume increase is supported by the ramp up of projects completed in 2014 and the expected startup of major developments in 2015.
The Erha North field was discovered in 2004 and initial production commenced in 2006. Operator Esso Exploration and Production Nigeria Limited holds a 56.25 per cent interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75 per cent share.