By Sopuruchi Onwuka
Nigerian National Petroleum Corporation (NNPC) expects it exploration and production unit, Nigerian Petroleum Development Company (NPDC) to deliver about half a million barrels of crude oil per day by 2020.
NPDC was established in 1988 to engage in the business of oil and gas exploration and production within and outside the country.
According to target timelines declared by the Managing Director of the company, Mr. Yusuf Matashi, NPDC is to drive production growth from current 180,000 barrels per day to 300,000 per day by next year; 400, 000 barrels per day by 2019; and 500, 000 barrels per day by 2020.
The Oracle Today reports that the new target would be a normal routine in a traditional agenda setting for the company which has trailed behind its global peers in commercial operations despite its vast assets.
For several decades, NPDC had maintained service contracts with Italian company, ENI, and later Atlantic Energy on a number of producing fields, raising questions about the capacity of the company to effectively deliver on its mandates to compete globally with peers like Brazilian Petrobrass , Norwegian Statoil, Saudi Aramco, Malaysian Petronas and other national oil companies that have become major players.
The past administration of President Goodluck Jonathan had secured a number of assets and operatorships in addition to a service contract to boost the company’s production volumes and guarantee enhanced income for the government.
In all, the company is involved in 29 concessions which comprise 22 oil mining leases (OMLs) and seven oil prospecting leases (OPLs).
NPDC has 55 per cent equity in nine blocks of Oil Mining Lease (OML) 4, 26, 30, 34, 38, 40, 41, 42 and 55; Non-equity operations in three blocks of selected NNPC Joint Venture fields; 60 per cent participatory interest in four blocks of OMLs 60, 61, 62 and 63 and 100 per cent ownership of seven blocks of OMLs 11, 13, 64, 65, 66, 111 and 119.
Mr. Matashi says the company also has varied interests in seven deep-water concessions.
He stated that the greatest challenges of the company were the reoccurring infractions on its facilities and the incessant uprisings by some members of its host communities, adding that a holistic plan was being worked out to address the teething challenges.
On production boost programmes, he said the company successfully executed a Global Memorandum of Understanding (GMoU) with communities in OMLs 30 and 34 to enhance operating environment and also drilled five horizontal wells in OML 26 to add 7, 000 bpd.
According to Matashi, NPDC produces 12, 000 barrels per day from OML 40, carried out well intervention programmes in OML 65 to increase output to 10,000 bpd.
He disclosing that first oil from that OML 13 secured by government for NPDC was expected by the fourth quarter of the year.
On the company’s gas portfolio, Mr. Matashi declared that NPDC was the highest supplier of gas to the domestic market, pumping over 700 million standard cubic feet of gas per day from Utorogu, Oredo2, Odidi and other facilities in which the company has commercial interest.
“NPDC aggressive gas pursuit since 2009 has also raised the company’s profile as the highest single supplier of gas to the domestic market with an average of 700 million standard cubic feet per day.
The Utorogu Non-Associated Gas 11 plant was also completed recently adding 150 mmscfd; the Oredo 2 gas plant also adds 100 mmscfd and the successful re-entry of Odidi which led to an addition of 40 mmscfd of gas indeed represents a major achievement for the company and a step forward to achieving NPDC’s aspiration to become a serious global player in the E & P industry,” he stated.