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NPDC outlines successes in oil, gas production

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The Management of the Nigerian Petroleum Development Company (NPDC) said it had recorded successes in crude oil and gas production from its assets.
Mr Mansur Sambo, NPDC Managing Director made this known in Benin on Friday when members of the House of Representatives Committee on Petroleum Resources (Upstream) visited the company as part of it’s oversight function.
NPDC is a registered company that operates profit and loss and also pays taxes.
Sambo who gave an overview of the operations of NPDC told the committee that NPDC, a subsidiary of the Nigeria National Petroleum Company has about 38 assets out of which 24 were producing.
He said that the a company had successfully finalised the Ogoni re-entry strategy plan in Oml 11 and commenced Gas SPV Shareholders Agreement as well as Gas Sale Agreement Negotiations
He said that NPDC in Oml 26 had also completed debottlenecking/upgrade of Ogoni flowstation, adding that commissioning was ongoing.
The NPDC boss further stated that the commission had achieved 99.6 percent of production target for July in Oml 65.
“We have completed the Abura field heavy oil development studies, Abura 6ST to add incremental production of 1500 bopd in the fourth quarter of 2021.
“We shave also successfully drilled and completed Oredo 18 and 19 and completed post completion test for Oredo 18.
“Over the next five years, NPDC aspires to embark on an aggressive but cost effective production strategy to reach 500,000bopd and 734MMscf/d gas
“2020 till now has been very challenging due to the outbreak of COVID-19 pandemic, NPDC is not only surviving but still standing very strong,” he said.
Sambo said the NPDC was probably the only oil company in Nigeria that recorded positive indices in 2020, other IOCs recorded negative indices
“We just held our board meeting and our audited financial statements were presented to NPDC board.
“What this means is that as the company survives, it will continue to meet it’s obligation by way of payment of taxes and royalty to the federation.
“We are able to keep employments during the COVID-19 period without letting anyone go,” he said.
According to him, one of the objectives of NPDC is to consistently achieve return on capital employed.
The managing director added that NPDC was not only the country’s largest gas producer but also the highest supplier to the domestic market.
Alhaji Musa Sarkin-Adar, Chairman, House of Representatives Committee on Petroleum Resources (Upstream) said they were in NPDC for oversight functions.
Sarkin-Adar noted that the oversight powers were inherent powers of the legislature as enshrined in the 1999 Constitution as amended.
He said the committee in pursuant to the power, were at NPDC to look into its operations and discuss the challenges with a view to proffer suggestions for improvement.
“To this end, the committee is interested in the operations outlay in the last two years till date.
“Projects undertaken during this periods, management of oil wells in your operations, crude production from each of the oil wells and contracts awarded during the period
“The sum of the contracts awarded, names and addresses of contractors and the overall income and expenditure of the company,” he said.
The chairman added that the Petroleum Industry Bill, if assented to by the President would address the challenges hitherto confronting the sector and create more opportunity for growth and investment in the oil and gas sector.

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NPDC largest gas supplier to domestic market

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By Moses Uwagbale

The Managing Director of the Nigerian Petroleum Development company (NPDC), Mr Mansur Sambo says the company is the largest supplier of the domestic gas in the country.

Sambo disclosed this while fielding questions from newsmen after a facility tour of the NPDC Integrated Gas Handling Facility (IGHF) in Ologbo, Edo, on Monday.

President Muhammadu Buhari will on Dec .22 inaugurate the gas facility which would boost domestic gas supply in the country.

“Something significant I will like you to know is that today, NPDC is the largest gas supplier to the domestic market.

“Out of about 1.7billion cubic feet (BCF) that goes to domestic market, NPDC, with its partners supply about 1.1billion and out of this 1.1 billion, NPDC equity is about 620 million standard cubic feet (mmSCF).

“So, as at today, NPDC is the largest gas supplier to the domestic market,” he said.

He said that NPDC had laid out plans to ensure that the facility was maintained over the years for economic growth and development.

He said that about 2, 000 Nigerians had been employed to man the operations, with a good number of them employed from the host community.

“Before the start-off of the plant, we have given employment letters to many people within the community even before employing through the formal recruitment process.

“As a panacea to make sure the plant does not go down, we have commenced training programmes; part of the cost of doing this plant, there is a programme for training for employed staff for the maintenance of the facility,” he said.

He further noted that most of the things achieved in the facility were done through indigenous companies, with in-house consultants.

The MD noted that few expatriates in the facilities were for specialist equipment that they would handle.

Commenting on construction of the facility, the NPDC boss  said that about two million man-hours were used to complete the process work.

He said that the two million man-hours all happened without Loss Time due to Injury (LTI).

“This means that from the day we started to where we are today, we have not had any accident or any significant incident that made us to lose a worker, a life or even an hour.

“In terms of resources, this is the project that would bring significant change to our income in NPDC; it would bring significant change to the environment because we are taking away substantial amount of gas that would have been flared.

“Today, we are converting it into naira. Naira, because gas revenues are received in naira. We are an indigenous company; we are NPDC, we are happy to take naira.

“Gas is a stabiliser to any company’s income that is in exploration and production (E&P).

“Crude oil prices fluctuate, gas prices do not fluctuate the same way crude oil prices fluctuate.

“What it means is that you would be able to make some good plans – long term plans from your gas income,” he said.

NAN reports that gas was seen flared in three points at the facility, but Sambo explained that it was a necessary activity in the oil and gas industry.

“Flare is just like breathing. Without the flare, the plant will not breathe. So, you must have a flare, process one, in order to protect your plant.

“So, whenever you have a process upset or pressure build up, gas will go to the flare, that way you save your plant.

“The reason why you are seeing a couple of them here is because we did this development in modular form.

“We started first with a modest flow station 1 type, gradually, we have flow station 2 and 3; today, we have the IDHF.

“As we have completed the IDHF, we have already started the engineering design, for us to now bring all the flares into one, so that we have just one, instead of the three or four that are visible now.

“Those who would come here in a couple of years’ time, in fact, less than two years from now, would see only one flare. We are already working on that one,” he said.