NPDC to Raise Gas Production

Fri, Jun 12, 2015
By publisher

Energy Briefs


THE Nigerian Petroleum Development Company, NPDC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, is targeting to raise its gas production from 420 million standard cubic feet per day, mmscf/d, to 600 mmscf/d in the Oil Mining Leases, OMLs, divested by the Shell Petroleum Development Company, SPDC and other International Oil Companies, IOCs.

In a Status Report of OMLs 30 and 34 obtained by a national newspaper from the unions of the oil workers, OML 34 is said to be predominantly a gas producing field with Utorogu Non-Associated Gas, NAG, 1 and Ughelli East, UGHE, gas plants as the two running plants prior to the acquisition. Utorogu NAG 1 and UGHE gas plants have an installed capacity of 360 million Standard cubic feet of gas per day and 90 mmscf/d, respectively.

The status report, which is aimed at disputing the claims by the new buyers of the assets that NPDC lacks the capacity to operate the blocks noted that prior to the takeover by NPDC, the former operator SPDC, was producing an average of 270 mmscf/d and 60 mmscf/d from NAG 1 and UGHE plants respectively.

The Petroleum and Natural Gas Senior Staff Association, PENGASSAN, and the Nigerian Union of Petroleum and Natural Gas, NUPENG, said in the report that with the recent improvement drive and overall service commitment by the NPDC, gas production has steadily ramped up to 360 mmscf and 60 mmscf/d for NAG 1 and UGHE plants, respectively.

“In summary, NPDC is currently producing about 420MMSCF/D from the two plants. It should be noted that this is a record that has never been achieved since the field came into existence in the 1970s. Production is still ramping up, having attained 430 MMSCF/D. In addition, plans are currently underway to further increase production from the two fields with the completion of Utorogu NAG 2 plant with an installed capacity of 150MMSCF/D. NPDC focus is to ramp up, grow and sustain production from the three plants at 450MMSCF/D by the third quarter of 2015. This would make NPDC the second largest gas producer in Nigeria,” the report said.

The report further stated that SPDC’s medium term plan is to deliver about 600 mmscf/d of gas to the national grid to support the government’s power aspiration by the end of 2015.
On the status of OML 30, the unions said NPDC took over operatorship from SPDC on February 1, 2013, when the Average Daily Net Production was about 20,982 barrels of oil per day (bopd) but has since raised production to 60,000 bopd since NPDC took over.

The status report listed other achievements of NPDC in OML 30 to include the successful re-entry into Uzere community to open-up Uzere-West field with a locked-in potential of 14,000 bopd; rehabilitation of eight units of 5.2MMSCF/D Gas Lift Compressors and commissioning of new GL Compressors to ensure adequate production uptime and increase in Gas lift capacity; successful installation of LACT units for proper hydrocarbon accounting; successful nnegotiated a Global Memorandum of Understanding (GMOU) with 112 communities of OML 30 together with Delta state government and the successful takeover of Oleh Field Logistic Base (FLB) and deployment of personnel to fully man all the Flowstations and Ughelli Production Station.

— Jun 22, 2015 @ 01:00 GMT