By Yemisi Izuora-Lagos
Oando Energy Resources Inc a company focused on oil and gas exploration and production in Nigeria, today is pleased to announce the completion of the 45,000bbls/d, 51km Umugini pipeline. The pipeline will provide an alternative evacuation route for crude oil produced from the Ebendo Field through the Trans Forcados export pipeline.
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 7,140boepd gross for OER and Energia Limited the operator of the asset (3,052boepd net to OER). However, export had been constrained at 3,093boepd (1,322boepd OER Share) via the Agip operated Kwale-Brass NAOC/JV infrastructure, in which OER currently has a 20% interest through the recent $1.5Bn 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.
Commenting, Pade Durotoye, CEO 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.”
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). The License includes two fields, Ebendo (producing) and the Obodeti field (undeveloped). Oando Energy Resources holds a 42.75% working interest on the field.
About Oando Energy Resources Inc. (OER)
OER currently has a broad suite of producing, development and exploration assets in the Gulf of Guinea (predominantly in Nigeria). OER’s sales production was 14,909 boe/d in the first nine months of 2014, with only 61 days of production from OMLs 60 – 63 attributed to this period. However production from OML’s 60 – 63 has contributed an average of 46,858boe/d for the 61 days from July 30, 2014 to September 30, 2014.
