NNPC signs USD700 million oil mining deal with Schlumberger

NNPC

The Nigerian National Petroleum Corporation NNPC said it has signed an oil field development agreement with Schlumberger.

The agreement will see Schlumberger, First Exploration and Petroleum Development Company and international oil services company Schlumberger develop the Anyala and Madu fields under Oil Mining Licence (OML) 83 and 85.

The deal will see Schlumberger providing the $700 million investment in developing the fields, which would add 193 million barrels of crude to current reserves.

The NNPC said the project would also add 800 billion cubic feet of gas to Nigeria’s proven gas reserves. Nigeria has the world’s ninth largest gas reserves, at 187 trillion cubic feet (tcf).

“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,” NNPC spokesman Ndu Ughamadu said in the statement.

The state oil company said OMLs 83 and 85 were located in shallow waters 40 km (25 miles) offshore.

NNPC said it held a 60 percent interest in the licences, while First Exploration and Petroleum Development Company, operator of the joint venture, held the remaining 40 percent

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