Production underway just 3 weeks after first discovery
Will ramp up to 3 million cu m/d of gas
3000 b/d of condensate; gas to be used for domestic demand
London — Oil major Eni has started gas and condensate production at the Obiafu-41 discovery in Nigeria’s Niger Delta, just three weeks after well completion, it said Wednesday.
Production will reach a capacity of about 3 million cu m/d of gas and 3,000 b/d of condensate, Eni said in a statement, adding that thegas from this block will be used for domestic consumption.
“The discovery contains approximately 28 Bcm of gas and 60 million barrels of condensate, and the gas from this discovery will largely be channeled to the domestic market in order to feed the power sector.”
The gas from this discovery will be processed at the Eni-operated Ob-Ob plant, and then sent to the 500-MW Kwale Okpai power plant, which is Nigeria’s first independent power plant. Upgrade for the Okpai plant is underway which will double its capacity to 1 GW is currentlyunderway.
Eni’s affiliate company NAOC — in which it holds a 20% operating stake alongside state-owned NNPC (60%) and Oando (20%) — made this find in the deeper sequences of the Obiafu-Obrikom fields with the Obiafu-41 deep well, in OML61 onshore Niger Delta.
Eni’s equity gas production in Nigeria last year was some 92 Bcf (2.6 Bcm), according to the company’s website, or around 5% of the country’s total gas output.
In Nigeria, approximately 30% of Eni’s gas production is supplied to the domestic market. In 2018, Eni’s equity hydrocarbon production amounted to 100,000 b/d of oil equivalent.
VAST GAS RESERVES
Nigeria — which has the largest gas reserves in Africa — has made it a priority to unlock and harness its gas potential to increase domestic and industrial power supply.
According to NNPC, Nigeria has around 202 Tcf of proven gas reserves — a number that was increased from around 187 Tcf late last year — plus about 600 Tcf of unproven gas reserves.
But despite having the largest gas reserves in Africa, only about 25% of those reserves are being produced or are under development, according to Shell.
Nigeria is also home to the six-train, 22 million mt a year capacity Nigeria LNG facility whose capacity is set to be raised to 30 million mt/year once a planned seventh train is built at the site.