Ejiofor Alike
26 November 2008
Lagos — Mobil Producing Nigeria (MPN) yesterday commissioned the $3.5 billion East Area Projects at Bonny River Terminal in Rivers State.
The project will have significant impact on increased crude oil output, increased reserve, monetisation of flared gas volumes and a boost to the Nigerian Content aspiration.
Chairman and Managing Director of MPN, Mr John Chaplin, who had just been elevated as Vice President of the ExxonMobil Corporation, and expected to leave the country soon, explained that the East Area Projects include Additional Oil Recovery (AOR) and Natural Gas Liquids 11 (NGL11).
Chaplin said in view of production cuts by Organisation of Petroleum Exporting Countries (OPEC) and corresponding cuts in Nigeria 's output, the new addition takes the company's crude oil production in Nigeria to about 800,000 barrels per day.
He said gas compression complex plus seven associated platforms, personnel living quarters and more than 100 miles of pipeline for natural gas gathering and distribution, are the major components of the AOR.
"We expect the project to produce 530 million gross barrels of additional oil reserves from blocs OML 67 and OML 70 and provide a peak volume of 120,000 barrels of oil per day," Chaplin said.
The NGL 11 includes installation of an offshore gas-processing complex, more than 125 miles of new pipelines and expansion of the joint venture's Bonny River terminal facilities.
"The new facilities can process up to 950 million cubic feet of natural gas a day, yielding up to 65,000 barrels per day of natural gas liquids," Chaplin added.
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