ExxonMobil awards contracts for Nigeria East Area Additional Oil
Recovery Project
Posted: 10 July 2003
Exxon Mobil Corporation announced today that its subsidiary, Mobil
Producing Nigeria (MPN), operator of the Nigeria National Petroleum
Corporation (NNPC/MPN) Joint Venture, has awarded major contracts
for the East Area Additional Oil Recovery (AOR) project offshore
Nigeria.
The $1.7 billion project will re-inject gas to improve oil recovery
from multiple reservoirs in the Joint Venture area and eliminate
routine flaring.
The development is expected to increase production by approximately
110,000 barrels per day and ultimate recovery in the NNPC/MPN Joint
Venture area by more than 500 million barrels.
The AOR project will consist of gas gathering pipelines, gas compression,
gas re-injection pipelines and associated facilities.
It will be located approximately 20 miles (32 kilometers) offshore
Nigeria in water depths of 85 to 110 feet (26 to 34 meters).
Startup is scheduled in 2006. "The East Area Additional Oil
Recovery project demonstrates our continued commitment to the efficient
development of Nigeria's oil and gas resources," said Rex Tillerson,
senior vice president, Exxon Mobil Corporation.
"The project is a good example of our ability to effectively
execute large, complex projects and achieve maximum economic recovery
in mature field areas. The project will also eliminate gas flaring
in our offshore operations two years ahead of Nigeria's national
objective to eliminate flaring by 2008."
Engineering, Procurement and Construction (EPC) contracts valued
at more than $800 million were awarded for the compression platforms,
pipelines and riser platforms.
The project will contribute substantial direct and indirect benefits
to the Nigerian economy through project spending and employment.
Nigerian contractors and suppliers will be used for significant
aspects of the development including fabrication of seven major
structures, pipe coatings and offshore construction.
ExxonMobil's subsidiary, MPN, holds a 40 percent interest in the
NNPC/MPN Joint Venture, which has a current production capacity
of 750,000 barrels per day of petroleum liquids.
The Federal Government of Nigeria holds the remaining 60 percent
interest through the NNPC. In Nigeria, ExxonMobil subsidiaries also
hold interests in six deepwater blocks covering 3.2 million acres.
The company has a leading position in nearly all the accessible
major exploration and production areas in the world, the industry's
strongest portfolio of proprietary technology and is a leader in
the application and development of exploration and production technology.
(BUSINESS WIRE)
Posted by Richard Price,
Editor Pipeline Magazine
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