…To Unlock 40,000BPD Crude Oil Production

In the bid to increase Nigeria’s crude oil production, Century FPSO Front Puffin is now undergoing upgrade and refurbishment in SHI-MCI yard Lagos, Nigeria. At completion, FPSO Front Puffin will be deployed to NNPC/Dantoge Industries jointly owned Kalaekule field

The Honourable Minister of State for Petroleum Resources (Oil), Senator Heineke Lokpobiri, disclosed this on his X handle after his facility tour of FPSO Front Puffin at the SHI-MCI yard in Lagos Nigeria. The FPSO Front Puffin which was previously positioned at the operating production asset in OML 113 was sold by Panoro Energy to PetroNor.

According to Senator Heineke Lokpobiri, this is in Support of local capabilities as it is essential in driving the increase in crude oil production, stating that the project demonstrates the kind of commitment and collaboration needed to strengthen Nigeria’s energy sector, and his ministry will remain supportive of similar efforts to further enhance production capacity

“This was my position while inspecting the FPSO facility in Lagos, a joint venture between NNPC Limited and Century Nigeria Limited, in partnership with WAEP and ENSERV. I was pleased to see the remarkable progress on the project, which will soon add 40,000 barrels per day to our national crude production.

“This facility is a clear example of how partnerships can enhance both local expertise and national output, aligning perfectly with our goal of significantly increasing oil production beyond current quota as directed by President Bola Ahmed Tinubu,” He stated.

“Interestingly, Mr. Ken Edward Etete, the Group Chairman of Century Group, has assured that the various upgrades underway at the facility are on track, with full completion expected by the first quarter of next year,” Heineken Posited.

In his remarks, Mr. Ken Edward Etete, the Group Chairman of Century Group, further highlighted the uniqueness of the facility in terms of building local capacity and its importance to Nigeria this point the country is in dire need of increasing its crude oil production.

“This is a very unique project and this is the first time we are doing altogether in-country upgrade, modification, and deployment using Nigeria resources. And this fits into the present government philosophy in the medium terms to increase production, so we bring that.

“We have domiciled a lot of resources and benefits in Nigeria and also increased skills by filling a lot of local people as you have seen on the site. Etete said.

Mr. Etete Expressed his surprise and utmost gratitude that the Honourable minister will find time from his tight schedule to honour this invitation within the shortest time, and this has shown his commitment and patriotism to the Nigerian Success story in the energy sector.  

“And this was a real surprise for us that the Honourable minister will show up to say let me even see that you (Century) are doing this because you are keen to get this infrastructure accomplished so we can see an increase in production,” He enthused.

Kalaekule field on its Oil Mining Lease 72 asset

In a 2020 interview with Bloomberg, the group executive director at Dangote Industries Ltd, Devakumar Edwin, said Mr Dangote is working with Chinese and Malaysian contractors and has completed a development plan for the Kalaekule field on its Oil Mining Lease 72 asset.

Work will then move to an undeveloped KI discovery on Block 71, a small shallow water asset in the south-eastern Niger River delta.

“We are looking at the first phase of 20,000 barrels a day but our objective is to expand it to 100,000 barrels a day for the two blocks. If everything goes well, we can do that in 12 to 15 months because we are already doing the 3D seismic studies,” Mr Edwin was quoted.

Production from the fields is expected to feed Dangote’s privately built 650,000-barrel-a-day refinery. The refinery is expected to double Nigeria’s refining capacity and while providing cost savings help in meeting the increasing demand for fuels.

Kalaekule Redevelopment is a conventional oil development located in shallow water in Nigeria and is operated by West African Exploration and Production. Kalaekule Redevelopment lies in block OML 72, with a water depth of around 243 feet. The project is currently in the approval stage and is expected to start commercial production in 2024. The Kalaekule Redevelopment conventional oil development will include a fixed platform.

The field is owned by Nigerian National Petroleum, Dangote Industries, and FIRST Exploration & Petroleum Development with a participatory working interest of 55.00%, 38.25%, and 6.75% respectively. Production from the Kalaekule Redevelopment conventional oil development project is expected to begin in 2024 and is forecast to peak in 2025, to approximately 19,966 bpd of crude oil and condensate. Based on economic assumptions, the production will continue until the field reaches its economic limit in 2057.

The field is expected to recover 75.58 Mmboe, comprised of 75.58 Mmbbl of crude oil & condensate. Kalaekule Redevelopment Recoverable Reserves Crude Oil & Condensate is 100.00%. Some of the key contractors involved in the Kalaekule Redevelopment project as follows are Engro and PE Energy.