ExxonMobil Commences Oil Production At Erha North Ahead Of Schedule | Independent Newspapers Limited
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ExxonMobil Commences Oil Production At Erha North Ahead Of Schedule

Posted: Sep 22, 2015 at 12:17 am   /   by   /   comments (0)

By Phillip Oladunjoye,


ExxonMobil Corporation has said that its subsidiary, Esso Exploration and Production Nigeria Limited, has started oil production ahead of schedule at its Erha North Phase 2 project.

The Erha North Phase 2 project, it noted, is a deepwater subsea development located 60 miles offshore Nigeria in 3,300 feet of water and four miles north of the Erha field, which has been producing since 2006, adding that the Erha North Phase 2 project includes seven wells from three drill centers tied back to the existing Erha North floating production, storage and offloading vessel, reducing additional infrastructure requirements.

ExxonMobil said the project is estimated to develop an additional 165 million barrels from the currently producing Erha North field, noting that peak production from the expansion is currently estimated at 65,000 barrels of oil per day and will increase total Erha North field production to approximately 90,000 barrels per day.

According to the President of ExxonMobil Development Company, Neil W. Duffin, “Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise. We are able to create additional shareholder value by optimizing existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”

Duffin said the ahead-of-schedule startup was supported by strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment, facilities and offshore installation.

“These contracts are bringing direct and indirect benefits to the Nigerian economy through project spending and employment, consistent with project objectives,” Duffin said.

ExxonMobil said it expects to increase its global production volumes this year by 2 percent to 4.1 million oil-equivalent barrels per day, driven by 7 percent liquids growth, noting that the volume increase is supported by the ramp up of projects completed in 2014 and the expected startup of major developments in 2015.

The oil major said that the Erha North field was discovered in 2004 and that initial production commenced in 2006, explaining that Esso Exploration and Production Nigeria Limited, which is the  operator, holds a 56.25 percent interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75 percent share.