NNPCL Announces Commencement of 14,000bpd Oil Production From Akpo West Field
- The NNPCL has celebrated the successful commencement of oil production from the Akpo West Field
- TotalEnergies operates the Akpo West field along with other partners, including Sapetro and Prime
- The field is expected to make an additional 14,000 barrels per day of condensate to Nigeria's production capacity
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The commencement of production from the Akpo West field on the Oil Mining License, OML2, in Nigeria, has been officially announced by the Nigerian National Petroleum Company Limited (NNPCL).
The move is expected to add to Nigeria's crude oil production output, which stood at 1.418mbpd in December 2023.
Source: UGC
This was disclosed in a statement posted on NNPCL's X page and signed by Olufemi O. Soneye, the company's chief corporate communications officer.
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The company said the development aligns with the directive from President Bola Tinubu to enhance production from the country's oil and gas resources.
Akpo West to boost Nigeria's production capacity
The Akpo West field is operated by TotalEnergies and other partners, with the NNPCL functioning as the concessionaire of the contract.
As per the provided statement, the advancement is anticipated to contribute an additional 14,000 barrels per day of condensate to the country's production capacity.
Subsequently, there are plans to ramp up production to approximately 4 million cubic meters of gas per day by 2028.
The statement read in part:
"The milestone was enabled by the strategic leadership of the Group Chief Executive Officer (GCEO), Mr. Mele Kyari, and the Upstream Directorate of the NNPC Ltd. whose support played no small role in propelling the operators to actualise the short- and mid-term hydrocarbon production goals of the President Tinubu administration."
TotalEnergies ensures commitment to continued production
TotalEnergies, in a separate announcement, highlighted that the project not only ensures the continuity of production within its current Akpo facilities but also serves as an additional crude oil resource.
Mike Sangster, senior vice president of Africa, exploration and production at TotalEnergies, said:
"This project fits the Company’s strategy of developing low-cost and low-emission projects. This project leverages TotalEnergies’ solid footprint in Nigeria and will quickly bring value to the country, TotalEnergies and its partners."
Advantages of improved oil production for Nigeria
Reacting to the development, energy analyst, Wale Ogundeji, told Legit.ng that improving oil production in Nigeria presents a multitude of advantages, both domestically and internationally.
He said:
Firstly, increased oil production boosts Nigeria's economy by generating higher revenues, which can be invested in infrastructure development, social programs, and diversification efforts to reduce dependency on oil.
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This, in turn, enhances job creation and stimulates economic growth, contributing to poverty reduction and improving living standards for citizens.
Enhanced production capacity allows Nigeria to meet growing international demand, reinforcing its position as a key player in the global oil industry.
This strengthens diplomatic ties and fosters cooperation with other oil-dependent nations, promoting stability and mutual economic benefits.
Ogundeji, however, added that it is essential for Nigeria to ensure that increased production aligns with sustainable practices to mitigate environmental degradation.
About Akpo West Field
The development of Akpo West, located on Petroleum Mining Lease (PML) 2 (formerly known as OML 130), leverages the existing Akpo Floating Production Storage and Offloading (FPSO) facility through a subsea tie-back approach. This strategy is designed to achieve cost reduction and minimize greenhouse gas emissions.
Located 135 kilometres offshore, Akpo West represents one of the discoveries within PML 2, closely connected to the Akpo Main, which commenced operations in 2009, achieving a production rate of 124,000 barrels of oil equivalent per day in 2023.
TotalEnergies operates PML 2 with a 24% stake alongside partners CNOOC (45%), Sapetro (15%), Prime 130 (16%), and the Nigerian National Petroleum Company Ltd., acting as the concessionaire of the Production Sharing Contract (PSC).
Nigeria set to welcome another oil-producing state
In related news, Legit.ng reported that Ogun state would soon be given frontier status and join the league of oil-producing states in the country.
The state governor, Prince Dapo Abiodun, disclosed this while presenting the 2024 appropriation bill titled, 'Budget of Sustained Growth and Development' at the Ogun State House of Assembly.
According to Abiodun, the state has commenced discussion on oil exploration in Tongeji Island and Olokola in the Ipokia and Ogun Waterside local government areas of the state, respectively.
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Source: Legit.ng
