Lagos, Nigeria – Eland Oil and Gas Plc, a West Africa-focused independent oil and gas company has announced the restart of production from the Opuama oil field in OML 40 onshore Nigeria.
Production from the field commenced on Tuesday 4th February, following successful testing and commissioning of the Opuama field’s facilities.
Two wells are currently in operation and production is expected to stabilise at 2,500 barrels of oil per day. The oil will be delivered via pipeline to a Shell operated Forcados terminal. The Opuama facilities currently have the capacity to export up to 30,000 barrels a day.
With production now established, the company’s focus will shift to increasing daily production volumes. Long term targets for OML40 predict daily production in the order of 50,000 barrels per day – though much must be done before that is a tangible possibility.
“Our objective has always been to be a producing company. We’re not an explorer, in the sense that we’re not a company that explores, appraises and then sells on assets. Our intention is to significantly increase reserves and production over time, increasing value for all stakeholders.
“Starting production is the first step towards this, and so it is a huge milestone for all of the OML40 stakeholders. It delivers cashflow, and allows OML40’s further development to be self-sustaining” Eland said in a statement.
The Opuama field which is operated by Nigerian Petroleum Development Corporation (NPDC), contains 54.2million barrels of recoverable oil reserves, and it was originally in production between 1975 and 2006 until it underwent a controlled shut-down by Shell Petroleum Development Co. of Nigeria. Eland holds 45% in OML 40, and NPDC holds the remaining license equity.