NIGERIA'S crude oil output is expected to rise to 2.4 million barrel-per-day, as Shell Nigeria Exploration and Production Company (SNEPCo) resumed production at Bonga deep-water field.
Shell commenced production in the field last Wednesday after six weeks statutory inspection and maintenance works. The facility has the capacity to add about 225,000 barrels per day to the nation's current 2.2m barrels per day.
Media Relations Manager of SNEPCo, Tony Okonedo, told The Moment that the maintenance works, which com- menced on February 28, were executed safely and within schedule. He said production would be gradually ramped up over the coming weeks, adding that Bonga has the capacity to produce 150 million standard cubic of gas daily. Bonga deep-water field is located 120 kilometres offshore Nigeria. It began production in 2004 and hit the first oil in 2005.
The shutdown of Bonga led to reduction in the nation's oil export, which officials said stood at 2.4 million barrels a day before the start of the maintenance. At present, Nigeria produces 600,000 barrel-per- day of crude oil from the deep offshore province.
Analysts believe that Nigeria could still earn sizeable revenue from the sale of lower volume of oil as a result of the sudden rise in global oil prices caused by Libyan crisis.
Oil prices in the international market stood above $120 per barrel at the weekend with Bent crude trading at $122.35.