The Oil Mining Lease (OML) 34 is among the assets the Nigerian Petroleum Development Company (NPDC) acquired from Shell Petroleum Development Company of Nigeria Limited (SPDC) in 2012 during its divestment programme.
The asset is predominantly a gas producing field with Utorogu NAG 1 and Ughelli East (UGHE) gas plants as the two running plants prior to the acquisition. Utorogu NAG 1 and UGHE gas plants have an installed capacity of 360 Million Standard cubic feet of gas per day (MMSCF/D) and 90MMSCF/D respectively.
Prior to the takeover by NPDC, the former operator SPDC, was producing an average of 270MMSCF/D and 60MMSCF/D from NAG 1 and UGHE plants respectively. However with the recent improvement drive and overall service commitment by the Management and staff of NPDC, production has steadily ramped up to 360MMSCF/D and 60MMSCF/D for NAG 1 and UGHE plants respectively. In summary, NPDC is currently producing about 420MMSCF/D from the two plants.
It should be noted that this is a record that has never been achieved since the field came into existence in the 1970s. Production is still ramping up, having attained 430 MMSCF/D. In addition, plans are currently underway to further increase production from the two fields with the completion of Utorogu NAG 2 plant with an installed capacity of 150MMSCF/D. NPDC focus is to ramp up, grow and sustain production from the three plants at 450MMSCF/D by the third quarter of 2015. This would make NPDC the second largest gas producer in Nigeria.
NPDC wishes to achieve this feat through the aggressive gas development campaign currently going-on in OML 34. This involves drilling of gas wells and completing/commissioning of the 150 MMSCF/D capacity NAG II plant in the short term. The NAG II plant is 96% completed as at today, 4th June, 2015. The company’s medium term plan is to deliver about 600 MMSCF/D of gas to the National grid to support the FGN Gas to Power aspiration by the end of 2015.