NNPC SIGNS US$1.7bn DEAL WITH CHEVRON TO INCREASE CRUDE PRODUCTION

NNPC and Chevron sign agreement aimed at boosting reserves and production of crude in Nigeria.

The Nigerian National Petroleum Corporation ( NNPC ) and Chevron Nigeria Limited (CNL) have finalized an Alternative Financing Agreement to increase crude production by about 39,000 barrels per day. This report is according to a statement issued by the NNPC Group Managing Director, Dr Maikanti Baru.

The agreement which was signed in London, is expected to achieve an incremental peak production of 283mmscfd  (283 million standard cubic feet per day) of gas. The project which costs about US$ 1.7bn would produce natural gas liquids and condensate extracted from the Sonam and Okan fields located in OML 90 and 91 in the Niger Delta.

Also included in the project is the completion of the Sonam Non-Associated Gas (NAG) well platform and Sonam living quarters platform; drilling of seven wells in the Sonam field and the Okan 30E NAG well, completion of the 20” x 32 Km Sonam pipeline and Okan pig receiver platform and the development of its associated facilities.

NNPC Boss, Mr. Baru, described the deal as a positive step towards growing the nation’s daily production and it supports the Federal Government’s strategic domestic gas-to-power aspirations.

The Project is currently about 92% complete as the facilities are 100 per cent completed while the wells are 40 per cent executed.