The Green Energy International Limited, which is an indigenous operator of Otakikpo marginal field in Rivers State has vowed to reduce the cost of crude oil production further from $20 per barrel to $15/b.
“Average of OPEX per barrel in the country today is about $35/barrel. We in Green Energy are doing $20/barrel and we hope to prune it to $15 per barrel,” said the chairman, Prof. Anthony Adegbulugbe.
He said the firm has planned to expand its crude oil production to 250,000 barrels per day (bpd) next year, which will represent 3% of the country’s production volume.
He spoke at the company’s 2022 end of year party and celebration in Abuja.
Besides, the chairman noted that the firm has developed plans to considerably raise production from the field with the potential to spend up to $750million within three years.
He recalled that the firm completed Otakikpo phase two campaign in October 2022 and the project team moved to site in November 2022 for the phase three project implementation.
He added that this astonishing and forward looking pace of opportunity maturation is unorthodox in an industry where it would typically take at best three years between development phases.
The chairman attributed the feat to the project corporate finance teams that he depicted as serial number one industry performers that could conceptualize and mature bankable projects in record time.
On the 250,000 plan, he said “I am very excited about our next phase of expansion which is to take the field’s production to 25,000 bpd.”
Adegbulugbe revealed that earlier in the field development, the firm established that the conventional approach of piping gas from a remote field needs to be replaced with a less orthodox technique of “bringing the plant to the gas.”
The unique strategy, he said, eliminates the need for expensive pipeline and compression since the gas utilization facility is located within the field that is quick to deploy and easy to relocate is the most preferred Associated Gas utilization solution from stranded and small fields.
Continuing, he announced that ” we are on track to to commissioning the 12mmscfd modular LPG extraction plant and 6MW power generating plants by the end of Q4 2022.”
The chairman noted that this scale of modular LPG plant will be the first to be installed in the country; an achievement that demonstrates that the firm is undaunted by hitherto serial number one exploits.
“It is our intention to showcase this success within the industry as our contribution to ameliorating the perennial Associated Gas flares that has bedeviled the several stranded pockets of oil fields in the Niger Delta thus supporting our government ‘s aspiration of combating this malaise,” he said.
Adegbulugbe also announced that the company’s project team has moved to site to commence the construction work for the onshore terminal and complete the terminal project design in-house and negotiate more favourable terms with service providers to reduce the overall cost of the project considerably.
He revealed that the company has proposed an onshore terminal that is conceptualized as a national Infrastructure with the potential to unlock significant stranded reserves.
He said the terminal will be a key enabler for the country’s development and energy security.
According to him, it will be the first new onshore terminal in Nigeria in over 50 years, and the first to be non – IOC owned and operated.
The chairman also noted that cost of crude oil production is about $35 per barrel but the firm has reduced it to $20 per barrel and it is to further prune it to less than $15/barrel.
