Department
of Petroleum Resources yesterday (Tuesday) said that Nigeria’s daily
crude oil production for the third quarter of 2012 dipped by 500,000
barrels as a result of production shut-down caused by the ravaging
floods in some parts of the country.
The department
said the actual crude oil (plus condensate) production of the nation was
2.5 million barrels per day for the period.
The Director, DPR,
Mr. Osten Olorunshola, who said this in Lagos on Tuesday at a press
conference, said, “Flooding in quarter three led to a total shut down of
0.5 million bpd.”
Some of the companies hit by the flood, he
said, were marginal field operator, Sterling Energy, Total Exploration
and Producing and Agip, among others.
Olorunshola, however, said
the floods were no threats to oil and gas assets in the country in the
long-run, as production would gradually pick up as the floods subsided.
According
to him, the country’s reserves as at January 1, 2012 were 31.170
billion barrels for oil, 5.018 billion barrels for condensate; 92.6
trillion cubic feet of associated gas and 90.150 tcf for non-associated
gas.
A major enhancement to deep water oil production, he said,
was achieved when Total’s Usan Floating Production Storage and
Offloading vessel, with capacity to process 180 million bpd, was
inaugurated in April this year.
He said a marginal field player,
Niger Delta Petroleum Resources, was currently refining 1,000 barrels of
oil per day from its new refinery, which recently came on stream.
Olorunshola said as at Monday this week, oil production had risen to 2.3 million bpd as a result of the decreasing flood level.
“Associated
gas flared average was 1.4 billion cubic feet per day, approximately 18
per cent of total gas produced, a reduction of five to seven per cent
from the end of 2011 flaring average,” the DPR boss explained.
He
said there were renewed shallow offshore leases for Exxon Mobil Joint
Venture, adding that the case was similar for Chevron Nigeria, Shell
Production Development Company, Total and Dubri Oil, though in progress.
Total declares force majeure
Shell
said its Nigerian venture had declared force majeure on exports of the
Bonny and Forcados crudes on Friday, citing damage caused by thieves and
flooding affecting a third-party supplier it did not identify.
Bonny
Light and Forcados are two of Nigeria’s most important oil grades and
in October accounted for 427,000 bpd, about a fifth of the country’s
total exports of 2.048 million bpd.
On Sept. 30, Shell said its
Nigerian unit closed the Bonny pipeline which sends crude to the Bonny
terminal and stopped 150,000 bpd of production after oil thieves caused a
fire.
Separately, French oil company Total on Tuesday told
Reuters it had stopped oil and gas production from its onshore OML 58
block due to flooding. The block, in which Total has a 40 percent stake,
normally produces the equivalent of 90,000 bpd of oil.
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