By Michael Eboh
Green Energy International Limited (GEIL), has secured a $350 million financing package for the development of the second phase of the Otakikpo Marginal Field in Oil Mining Lease (OML) 11 in Rivers State.
In a statement, Director, Corporate Affairs of the Green Energy, Mr. Olusegun Ilori, said the financing package was secured after it signed a Memorandum of Understanding (MoU), with the financiers, comprising a consortium of international companies including an oil services giant, London based international bank, a prominent crude oil off-taker and EPIC contractor.
He explained that the deal, which would make the Otakikpo field a crude processing and exporting hub in the Eastern Niger Delta, was conceived to unlock the potential of other commercially stranded marginal fields in the area.
He noted that the second phase development involves the drilling of additional wells at Otakikpo Marginal Fields, which will significantly increase the field production from the present 6,000 barrels of oil per day, bopd, to 20,000 bopd and the expansion of the processing facilities from 12,000 to 50,000 bopd to adequately handle production from the other fields.
He said, “The project also involves the construction of 1.3 million barrels onshore terminal and a 20 kilometers export pipeline and crude oil loading system for efficient export of the expected production.
“It is to be noted that the GEIL has already secured the approval to construct (APC) for the onshore terminal and the associated export infrastructures. The onshore terminal will significantly reduce the field production OPEX, increase operational efficiency, improve security and contribute tremendously to the economy of the local communities.
“The onshore terminal will be located in the Atlantic Industrial Park- Ikuru Town, being also facilitated by GEIL, as a gas-powered commercial and high-value proposition anchored on the power to be generated from the field’s gas production. GEIL has recently obtained a 40 megawatts power generation license from the NERC for the power generation that will service the industrial park.”
Commenting on the conclusion of the MoU, the Chairman of Green Energy International Limited, Professor Anthony Adegbulugbe, described the deal as a major milestone in the oil and gas industry.”
particularly for the marginal field, coming on the heels of a successful commencement of production in 2017 and recent conclusion of the interpretation of the 3D seismic data acquired by the company to maximize the Otakikpo field opportunities.
He said the stakeholders are excited that the financial package brings it close to realization, the vision of the company as an integrated energy company that ensures optimal utilization of hydrocarbon resources for the benefit of the nation and local communities around the field.
He said that the company is sure to benefit from the consortium’s excellent international project and field management experiences and expertise.
Adegbulugbe thanked all the partners in the consortium for working harmoniously together to advance the project up to this stage.
On the issue of gas monetization, Adegbulugbe further stated that, “we are poised more than ever before to develop the oil and gas field with the Small Scale Gas Utilization Project ( SSGUP), as the backbone of field development activities to ensure compliance with the zero gas flare policy the Federal Government.
The Factory Acceptance Test (FAT), of the 12mmscfd gas processing plant for which the Approval to Construct ( APC), was received from the Federal Government has been concluded recently at the facilities of the Chinese company — Peiyang Chemical Equipment Co. Ltd (PCC), the original equipment manufacturer (OEM).”