By Clara Nwachukwu
NIGERIA unit of French oil giant, Total Exploration and Production, E&P, Nigeria Limited, said crude oil production from its joint venture, JV operations is now about 190,000 barrels per day, kp/d. The production volume, it said, is made up of 105kb/d liquids and 85kb/d gas.
Speaking further on Total’s operations at the company’s regional office in Port Harcourt, Rivers State, the Executive General Manager, JV Field Operations, Mr. Jean-Claude Vachet, gave further breakdown of the contributions from its operated assets to the production volumes from both onshore and offshore fields. They include Oil Mining Leases, OMLs 58 – 25kb/d; 99 – 30kp/d; 100 – 15kb/d; and 102 – 35kp/d, which production is expected to double upon the completion of Ofon 2, offshore project. Total is the operator of all the assets with 40 percent interest and the Nigerian National Petroleum Corporation, NNPC, with 60 percent.
Vachet told journalists that Ofon 2 achieved gas flare out in December 2014, adding that 1 million standard cubic feet will be supplied to the Nigeria LNG.
He added that despite the challenges brought about by oil price crash, Total did not cancel any of its JV projects in Nigeria, even as it tried to maximise costs.
He told Vanguard in an exclusive chat on the sidelines that Ofon 2 costs were escalated basically because of the long cycle, saying: “Ofon 2 has been a long story, it was decided in 2004, because of the contractual arguments, with so many contracts and so many companies with a lot of interfaces, they didn’t help. We have really worked to reduce the cost, but unfortunately it is the consequence of long dynamic. Certainly if we start today, probably we will not make the same choices or organise it the same way.”
He also disclosed that of three wells have been drilled in Ofon 2 – 41, 42 and 43, of which 41 and 42 are producing at 33kb/d and expecting to ramp up production very soon.
JV cash calls
With regard to JV cash calls, which had stalled many development projects in the industry, Vachet said there is an industry wide discussion on the issue.
Expatiating further, Total Managing Director/Chief Executive, Mr. Nicolas Terraz, disclosed that cash call obligations were the focus of discussions during a meeting between the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and chief executives of international oil companies, IOCs, last week in Abuja.
He added that the current industry environment is very challenging, especially in terms of funding, adding that “JV partners and the government need to work out an agenda to find a solution to the problem.”