Funmilayo Dodondawa, Lagos
Oando Energy Resources has announced the completion of all civil and pipeline works associated with the Qua Iboe field, crude delivery and sales infrastructure with commercial production at 2,150 boepd Gross.
The company which focuses on oil and gas exploration and production in Nigeria, also holds a 40 per cent working interest in the field. In its capacity as technical services provider, OER, together with the operator and 60 per cent owner, Network Exploration and Production Nigeria Limited (NEPN), brought the field from conceptualization, through development, to first oil delivery. The commercial oil production from the field’s reservoirs has now commenced at an initial rate of 2,150boepd gross to the partners. The crude processing facility was commissioned in the fourth quarter of 2014 but commercial production was delayed until the completion of the associated cluster crude delivery and sales infrastructure into the Qua Iboe Terminal.
Pade Durotoye, CEO Oando Energy Resources said that the organization is delighted to have achieved this milestone, having taken the field through the full cycle of asset development, from drilling to facility engineering, construction and commissioning, and also increasing its organic production contribution from the company portfolio.
“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.” He said.
The Company identified the asset in 2012 and an agreement was reached with NEPN for OER to technically lead and fund certain aspects of NEPN’s costs until first oil. Consequently, post recovery of all loan repayments, OER is entitled to 90 per cent of NEPN’s sales proceeds from its 60 per cent share of crude oil production until NEPN’s obligation is paid in full, with OER earning an additional 10 per cent fee on the funded amount.
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.
Seplat announces that the Court of Appeal sitting in Lagos has today suspended the Order …