Production begins from Erha North Phase 2 project

Esso Sign Danrolo Wikimedia CommonsEsso Exploration and Production Nigeria started production using US$400mn less than the budgeted allocation. (Image source: Danrolo/Wikimedia Commons)ExxonMobil subsidiary, Esso Exploration and Production Nigeria, has started oil production at the Erha North Phase 2 project offshore Nigeria

Production from the project has started five months ahead of schedule, and it took about US$400mn less than the planned budget. The project is likely to develop an additional 165mn barrels from the currently producing Erha North field. The expansion is expected to produce a peak of 65,000 bpd and will increase total production from the field to approximately 90,000 barrels per day.

Neil W. Duffin, president of ExxonMobil Development Company, said that the ahead-of-schedule startup was supported by strong performance from Nigerian contractors, which accounted for more than US$2bn of project investment for goods and services, including subsea equipment, facilities and offshore installation.

“These contracts are bringing direct and indirect benefits to the Nigerian economy through project spending and employment, consistent with project objectives,” Duffin said.

The Erha North Phase 2 project is a deepwater subsea development located about 95 km offshore Nigeria in 1,000 metres of water. It includes seven wells from three drill centres tied back to the existing Erha North floating production, storage and offloading vessel, reducing additional infrastructure requirements.

ExxonMobil is optimising “existing infrastructure, which reduces capital spending requirements and improves capital efficiency,” Duffin explained.

The Erha North field was discovered in 2004 and initial production commenced in 2006. Operator Esso Exploration and Production Nigeria Limited holds a 56.25 per cent interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75 per cent.

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