Government to earn $8.75m from new 175,000bpd oil production

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PHOTO: FinancialTribune

The Federal Government’s revenue drive has got a lift with additional $8.750 million or N2.668 billion to be derived from fresh 175,000 barrels of oil equivalent per day from Shell’s Gbaran-Ubie Phase 2.

The new production is approximately the equivalent of 864 million standard cubic feet of natural gas per day (mmscf/d), and 26,000 barrels of condensate per day in realisation of Federal Government’s gas monetisation programme.

According to a statement by Shell Petroleum Development Company of Nigeria Limited (SPDC) yesterday, signed by its spokesperson, Bamidele Odugbesan, Gbaran-Ubie Phase 2 followed the success of the first phase of the Gbaran-Ubie integrated oil and gas development, which was commissioned in June 2010.

Odugbesan, who stated that peak production at Gbaran-Ubie Phase 2 is expected in 2019 with approximately 175,000 barrels of oil equivalent (kboe) per day, said that Gbaran-Ubie Phase 2 would help to process the condensate from Kolo Creek, Gbaran, Koroama and Epu fields, thereby assisting in reducing the volume of flaring from SPDC operations.

He said that the project had contributed to economic development in the Niger Delta and assisted the local community and Nigerian companies.

In the same vein, Managing Director, SPDC and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said: “The latest development at Gbaran-Ubie is a powerful statement on the continuing commitment of SPDC and our joint venture partners to harness Nigeria’s oil and gas resources for the benefit of the country and stakeholders.

“The project was delivered safely through an integrated team with a significant engagement and empowerment of community service providers and Nigerian companies.”

Also, Vice President, Nigeria and Gabon, Peter Costello, described the development as an “exciting news for Nigeria, as it signals Shell’s continued strategy of deploying investment and expertise in our areas of strength. Our aim is to continue to explore areas of partnership in Nigeria where the right conditions exist and where we can add best value.”