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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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