Afrigather The choice of ExxonMobil to speculate $10 billion in deep-water oil initiatives in Africa’s largest oil-producing nation is predicted to unlock at the very least 180,000 barrels per day (bpd), BusinessDay’s findings have revealed.
ExxonMobil is among the worldwide oil corporations (IOCs) which have exited Nigeria’s onshore setting to discover the deep-water operations within the oil-rich Niger Delta.
In current public appearances, ExxonMobil executives in Nigeria have hinted on the progress made on a number of deep-water operations in Nigeria, together with OML 133 (Erha FPSO), OML 138 (Usan FPSO), OML 139 and OML 154 (Owowo discovery) within the oil-rich Niger Delta, with out giving any specifics.
Learn additionally: UNGA79: FG hails ExxonMobil’s $10bn deep-water funding plan In Nigeria
Now, ExxonMobil’s new technique in Nigeria will give attention to the Owowo deep water asset, a large deep-water venture drilled by ExxonMobil affiliate, Esso Exploration and Manufacturing Nigeria (Deepwater Ventures) Restricted, estimated to price $10 billion and unlock an estimated 180,000 bpd.
BusinessDay’s findings confirmed the deepwater asset found in October 2016 has a possible recoverable useful resource of between 500 million and 1 billion barrels of oil on the Owowo area offshore Nigeria.
“We’re working intently with the president’s workplace and the particular adviser to the president to safe beneficial fiscal preparations that can make this vital funding attainable,” stated Shane Harris, chairman and managing director of ExxonMobil associates in Nigeria, as quoted by the press launch from the presidency on Thursday.
“Our dedication to Nigeria stays unwavering. As we have fun 70 years of oil manufacturing and eight billion barrels produced, we’re not retreating however refocusing our investments on deep-water alternatives,” Harris was additional quoted as saying.
Exxonmobil issued a young in August 2023 searching for for oil rigs that can perform drilling, completion, testing, non permanent abandonment and workovers in water depths from 600 to 1,800 metres. It highlighted OML 139 and 154 on this tender, which closes on September 6, 2023. This may run for 3 years with an possibility for an additional two.
One other tender referred to as for the supply of oil nation tubular items (OCTG) and providers in the identical licences and with the identical period. This OCTG tender closed on August 8 2023.
Learn additionally: Brevity Anderson indicators cope with African Petroleum Producers Organisation
PIA adjustments
Bala Wunti, group basic supervisor of Nigerian Upstream Funding Companies (NUIS) of previously Nationwide Petroleum Funding Administration Companies (NAPIMS), in July 2023, stated the Owowo venture, which Exxon has put within the freezer, has been unfreezed courtesy of the Petroleum Business Act and adjustments within the Manufacturing Sharing Construction.
ExxonMobil holds 27 % curiosity and is the operator for the Owowo venture, whereas Three way partnership companions embody Chevron Nigeria Deepwater G Restricted (27 % curiosity), Whole E&P Nigeria Restricted (18 % curiosity), Nexen Petroleum Deepwater Nigeria Restricted (18 % curiosity), and the Nigeria Petroleum Improvement Firm Restricted (10 % curiosity).
A observe from S&P World final 12 months highlighted the affect of the PIA on deepwater initiatives. The adjustments have elevated Owowo’s web current worth (NPV) by greater than 200 %, it stated, to greater than $3.5 billion.
Obo Idornigie, vp at Welligence, an vitality knowledge intelligence agency, instructed Vitality Voice that companions in Owowo have been planning to tie the sector again to Usan FPSO, which is underutilised.
He stated NNPC information point out that area improvement planning at Owowo can be accomplished with companions aiming for the Entrance-Finish Engineering Design (FEED) and contracting in 2024.
Idornigie added, “That is encouraging information, however initiatives like Bonga SW and Preowei have additionally had numerous false begins. Let’s hope Owowo can buck the development.”
The Erha area is in OML 133, whereas Usan is in OML 138. Exxon’s Nigerian volumes have been declining over current years. In 2020, manufacturing was 150,000 barrels per day of liquids. By 2023, this had fallen to 123,000 bpd.
Liam Mallon, president of ExxonMobil Upstream Firm, was amongst the primary executives to fulfill President Bola Tinubu after he took workplace in Might. The assembly despatched encouraging indicators on the key’s dedication to Nigeria and the opportunity of contemporary investments being introduced quickly.
Learn additionally: Petroleum minister pledges partnership with NIPetE
In June, the corporate appointed Shane Harris as its new chairman and managing director in Nigeria.
Divestment from Onshore
There’s an ongoing plan with ExxonMobil and Seplat Vitality for the divestment of the previous’s onshore property for $1.2 billion.
The deal, which has been ongoing since 2022, is anticipating some greenlight following President Bola Tinubu’s intervention within the situation.
Aside from Exxonmobil, Shell Plc reached an settlement in January to promote its Nigerian onshore oil property to an area consortium for over $1.3 billion, pending authorities approval.
Along with the preliminary sum, Shell anticipates receiving further funds of as much as $1.1 billion. The buying consortium, named Renaissance, contains ND Western, Aradel Vitality, First E&P, Waltersmith, and Petrolin.
Equally, TotalEnergies acknowledged plans to dump its minority stake in a major Nigerian onshore oil three way partnership following Shell’s divestment announcement.
