Vanguard (Lagos)

Nigeria: FG Sets to Boost Oil Production by 180,000 Barrels

Abuja — NIGERIA’s crude production is set to get a major boost of about 180,000 barrels of oil equivalent per day following the intensity of exploratory works currently going on at Total’s Usan oil field offshore Nigeria.

This is expected to bring the country’s total oil production up from 2.6 million barrels per day to almost 2.8 million barrels per day  when it attains optimal capacity in 2012.

Located on Oil Mining Lease, OML, 138 in water depth of 750 to 800 metres, the Usan field will come on stream in 2012, and is expected to produce for 25 years.

Managing Director Total Upstream Nigeria Ltd., Mr. Guy Maurice, told a cross section of journalists in Lagos yesterday that the company was set to expend some $8 billion on the project.

According to him, outside the significant boost that the Usan field would generate for the country, the oil field would also place very strong emphasis on Nigerian Content, with nearly 11 million man-hours of work in-country, including engineering, fabrication, assembling and offshore integration of equipment.

“Much of the project packages are being produced in yards in the Niger Delta locations of Port-Harcourt, Onne, and Rumuolumeni in Rivers State, Warri, in Delta State as well as Snake Island in Lagos by Nigerian-based suppliers and employees.

In fact Usan is a significant change in Nigerian Content Development, as the project has generated a remarkable increase in the works done in Nigeria compared to previous projects involving all segments from engineering and construction to project management.”

He further noted that the Usan project would have a direct positive impact on the Nigerian economy and in the process of doing that has recorded many firsts in technology for several Nigerian companies directly related to the project.

The Total’s Usan field is coming after the company’s Akpo field which attained first oil in March 2009, as well as the Girassol and Dalia fields in Angola which has been rated successful by several oil sector analysts.

Nigeria’s nameplate oil production capacity was estimated to have been around 2.9 million barrels per day (bbl/d) at the end of 2009 but as a result of attacks on oil infrastructure, monthly crude oil production ranged between 1.6 million bbl/d and 2.0 million bbl/d.

Disruptions have been attributed to direct attacks on oil infrastructure as well as pipeline leaks and explosions resulting from bunkering activities.

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