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Nigeria's NNPC, First E&P venture produce 20,000 barrels of crude at OML 85
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Nigeria's NNPC, First E&P venture produce 20,000 barrels of crude at OML 85
Apr 19, 2024 12:49 PM

ABUJA, April 19 (Reuters) - Nigeria's NNPC Ltd and its

local joint venture partner, First E&P, have commenced

production at OML 85 and achieved 20,000 barrels per day (bps)

output, the state-oil firm said in a statement on Friday.

OML 85 was one of two blocks sold to First Exploration and

Petroleum Development Company Limited (First E&P) in 2015 by

Chevron ( CVX ).

That and OML 83 are located between 30 to 40 km offshore in

the central Niger Delta, where water depths range from 15 to 50

metres. OML 83 contains the Anyala field and OML 85 contains the

Madu field.

Nigeria is trying to boost oil production, especially from

fields which oil majors sold to local firms, in a bid to exit

onshore drilling in the Niger Delta, a region rife with oil

theft, pipeline vandalism and host community problems including

spills.

NNPC's chief executive, Mele Kyari, said the commencement of

oil production at the Madu Field will contribute to the goal of

meeting the production required to drive revenue growth and

boost the economy.

In November, Nigeria was pumping close to its 2024 OPEC

quota of 1.38 million bpd but less than a 2024 level of 1.58

million bpd being considered for it subject to independent

assessments.

But its production declined in March, with exports falling

more sharply according to some ship trackers as the Dangote

refinery took in more cargoes.

NNPC said the final investment decision on the development

of the Madu Field and a sister field, Anyala, was taken by the

First E&P joint venture in 2018.

Crude production from the Madu Field will be processed at

the joint venture's Abigail-Joseph Floating Production Storage

and Offloading (FPSO) Unit, which has a crude oil storage

capacity of up to 800,000 bbls.

(Writing by Chijioke Ohuocha; editing by Andrew Heavens)

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