The Nigerian National Petroleum Corporation, NNPC, says plans to grow the nation’s crude oil reserves to 40 billion barrels by the year 2020 have received a major boost.
The Group Managing Director of the NNPC, Maikanti Baru, said this in Abuja on Thursday in a statement by Ndu Ughamadu, the Corporation’s Group General Manager, Public Affairs Division.
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Mr. Baru, at a tripartite signing of agreements, said this target would be realised between the NNPC/FIRST Exploration & Production Joint Venture (JV) and Schlumberger for the development of the Anyalu and Madu fields in the Niger Delta under Oil Mining Licence, OML 83 and OML 85, offshore Nigeria.
He explained that under the agreement, Schlumberger would provide the over $700 million development cost of the Anyala and Madu fields, which would generate 193 million barrels of crude oil into the current reserves of 37.2 billion barrels.
Also, an additional 800 billion cubic feet of gas would go into the nation’s proven gas reserves, which currently stand at 197 trillion cubic feet of gas.
“In terms of daily production, the fields will yield 50,000 barrels of crude oil per day and 120 million standard cubic feet of gas per day by early 2019.
“The approach to funding JV operations in response to the challenging economic environment was novel and aligned wholly with the government’s aspiration to increase crude oil and gas production, reserves growth and monetisation of the nation’s enormous gas resources.
“Apart from serving as a test case for future funding mechanism, the approach adopted was in sync with the realisation of the corporation’s 12 Business Focus Areas (BUFA) which is to ramp up crude oil production and reserves growth, amongst others.