By Michael Eboh

Nigeria crude export is expected to rise by 45,000 barrels per day in the next couple of days, as Oando Energy Resources, OER,a subsidiary of Oando Plc, said it has completed the construction of its 51 kilometer Umugini pipeline.

The 45,000 barrels of oil per day pipeline, according to a statement by the company, will provide an alternative evacuation route for crude oil produced from the Ebendo Field through the Trans Forcados export pipeline.

The company disclosed that its export capability has been constrained, over the last couple of months, by inadequate pipeline infrastructure, despite increase in its production capacity.

Commenting on the development, Mr. Pade Durotoye, Chief Executive Officer, Oando Energy Resources said, “The completion of the Umugini pipeline now allows us to maximize the value of our investments to date on the asset and provides the latitude for further profitable development of prospects and resources identified in Ebendo.”

According to him, following the successful drilling of Ebendo wells 5, 6, and 7 over the past 12 months, oil production capacity within OML 56 has grown to 7,140 barrels of oil equivalent per day (boepd) gross for OER and Energia Limited the operator of the asset, with 3,052boepd net to OER.

He said, “However, export had been constrained at 3,093 boepd (1,322boepd OER Share) via the Agip operated Kwale-Brass Nigeria Agip Oil Company/Joint Venture (NAOC/JV) infrastructure, in which OER currently has a 20 per cent interest through the recent $1.5 billion acquisition of ConocoPhillips Nigerian Oil & Gas Business.

“The completion and commencement of operations on the Umugini pipeline ensures that the Ebendo field can now produce at its full capacity.”

The company said Ebendo is located onshore, in the central Niger Delta approximately 100 km north-west of Port Harcourt and covers an area of 65 km2 (16,062 acres).

It added that the License includes two fields, Ebendo (producing) and the Obodeti field (undeveloped), noting that Oando Energy Resources holds a 42.75 per cent working interest on the field.

Oando Energy, had in July completed the acquisition of ConocoPhilips’ upstream assets in Nigeria for $1.5 billion, about N240 billion.

Oando Energy, through the transaction, indirectly became owner of all the issued share capital of Phillips Oil Company Nigeria Limited, POCNL, Conoco Exploration and Production Nigeria Limited, CEPNL and Phillips Deepwater Exploration Nigeria Limited, PDENL.

The company, had also in its third quarter financial statement, announced a net income of $89.541 million for the three months ended — July to September 2014, compared to a net income of $2.778 million for the nine months ended September 30, 2013 and $12.371 million for the three months ended, September 30, 2013.

The company declared revenue of $247.38 million, rising by 139.63 per cent from $103.235 million recorded in the third quarter of 2013.

Commenting on the financial performance, Mr. Pade Durotoye, Chief Executive Officer, Oando Energy Resources said, “At the end of July we completed the transformational acquisition of the Nigerian Upstream business of ConocoPhillips Company, that substantially grew our production, reserves, resources and cashflow, which will allow us exploit a broader suite of assets and new growth opportunities both onshore and offshore Nigeria.”