ExxonMobil Announces Third Major Nigeria Startup for Year
26 Juillet 2006 - 4:00PM
Business Wire
ExxonMobil announced today that its affiliate, Mobil Producing
Nigeria Unlimited (MPN), has started up the East Area Additional
Oil Recovery project located approximately 17 miles (28 kilometers)
offshore Nigeria. MPN (40 percent interest) is operator of the
project with co-venture partner Nigerian National Petroleum
Corporation (60 percent). The project involves the reinjection of
natural gas to mitigate normal field decline from East Area
reservoirs and significantly increase ultimate oil recovery from
Blocks OML 67 and OML 70. It is expected that the project will
produce 530 million gross barrels of additional oil reserves from
the blocks, and will provide a peak volume of 120,000 barrels a day
of oil. The development also will further reduce routine flaring at
the facilities to help meet the Nigerian government's and
ExxonMobil's goals. Major components of the Additional Oil Recovery
(AOR) project include a gas compression complex plus seven
associated platforms, including crew living quarters, and more than
100 miles (161 kilometers) of new pipeline for natural gas
gathering and distribution. Total cost of the project is expected
to be approximately $1.3 billion. The AOR project is the third
major facility startup for ExxonMobil affiliates in Nigeria this
year. In February, MPN started production from the full-field
facilities of the $1.3 billion Yoho project, with estimated
recoverable resources of 440 million oil barrels. Yoho is currently
producing about 160,000 barrels of oil a day, and injecting about
110 million cubic feet of natural gas daily. The facilities consist
of a central production processing platform, 33 wells, living
quarters platform, and a Floating, Storage and Offloading (FSO)
vessel. The development is a joint venture between MPN (40 percent)
and the Nigerian National Petroleum Corporation, with 60 percent
equity holding. In March, the deepwater Erha field started
production. Together with the Erha North satellite due on-stream in
the third quarter of this year, the $3.5 billion Erha and Erha
North developments will consist of 32 subsea wells tied to a
Floating Production Storage and Offloading (FPSO) vessel. The
combined Erha production is ramping up as expected for a total
production output of 190,000 barrels a day. Associated natural gas
production is expected to be about 300 million cubic feet a day,
which will be reinjected for reservoir management. Esso Exploration
and Production Nigeria Limited (EEPNL), an ExxonMobil affiliate, is
the operator of the Erha and Erha North developments. EEPNL has a
56.25 percent participating interest in the OML 133 production
sharing contract area where Erha and Erha North are located, with
Shell Nigeria Exploration and Production Company holding the
remaining 43.75 percent. Stuart McGill, senior vice president of
Exxon Mobil Corporation (NYSE:XOM), said, "Liquids production that
ExxonMobil affiliates either operate or participate in offshore
Nigeria currently exceeds 1.1 million barrels per day. The Yoho,
Erha and AOR developments are important new supplies in helping our
company meet growing global oil demand. All three projects started
up on schedule and within facilities budgets, reflecting
ExxonMobil's global project execution and management capabilities.
These projects represent state-of-the-art technology application
and underscore our continued commitment to supporting Nigeria in
meeting its goals to promote national business development and
capacity growth." The Yoho, Erha and AOR developments included
contract awards to several Nigerian companies for in-country
fabrication services, logistics support as well as training,
development and employment of Nigerians. Activities involved
fabrication of a mooring buoy, subsea manifolds, drilling unit
pilings, and modules for the Erha FPSO such as the flare tower,
pipe racks and riser protection frames. The AOR project included
more than 6,000 tons of steel fabricated in Nigeria as well as
in-country application of coatings for all pipelines. CAUTIONARY
STATEMENT: Estimates, expectations, and business plans in this
release are forward-looking statements. Actual future results,
including resource recoveries, production rates, and project plans
and schedules, could differ materially due to changes in market
conditions affecting the oil and gas industry or long-term oil and
gas price levels; political or regulatory developments; reservoir
performance; timely completion of development projects; technical
or operating factors; and other factors discussed under the heading
"Factors Affecting Future Results" in the Investor Information
section of our website (www.exxonmobil.com) and in Item 1A of our
most recent Form 10-K. References to "resources," "barrels of oil,"
and similar terms include quantities of oil and gas that are not
yet classified as proved reserves but that we believe will be
produced in the future.
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