Oando Begins Crude Oil Production from Qua Iboe Field

Oando Energy Resources has commenced production of crude oil from the Qua Iboe field, following the completion of all civil and pipeline works and associated crude delivery and sales infrastructure, with commercial production at 2,150 barrels of oil equivalent per day (boepd).

Oando Energy Resources holds a 40 per cent working interest in the field.

In its capacity as the technical services provider, the company, alongside the operator and 60 per cent owner, Network Exploration and Production Nigeria Limited (NEPN), brought the field from conceptualisation, through development, to first oil delivery.

According to a statement yesterday by Oando, the commercial oil production from the field’s reservoirs has now commenced at an initial rate of 2,150boepd gross to the partners.

“The crude processing facility was commissioned in the fourth quarter of 2014 but commercial production was delayed until the completion of the associated cluster crude delivery and sales infrastructure into the Qua Iboe Terminal,” the statement said.

The Chief Executive Officer of the company, Mr. Pade Durotoye, said the company was delighted to achieve the feat.

“We are delighted to have achieved this milestone, having taken this field through the full cycle of asset development, from drilling to

facility engineering, construction and commissioning, and also increasing our organic production contribution from our portfolio,” said Durotoye.

“We will now be focusing our attention on maturing the potential of this field through seismic acquisition and interpretation, and a possible multi-well drilling programme.

“We hope the Qua Iboe field will follow in the footsteps of our successful Ebendo field, where production has increased from 900bopd (gross) at inception to over 7,500bopd (gross) through the identification and drilling of new reservoirs in the field,” Durotoye added.

Oando identified the asset in 2012 and an agreement was reached with NEPN for Oando to technically lead and fund certain aspects of NEPN’s costs until first oil.

Consequently, post-recovery of all loan repayments, Oando is entitled to 90 per cent of NEPN’s sales proceeds from its 60 per cent share of crude oil production until NEPN’s obligation is paid in full, with Oando earning an additional 10 per cent fee on the funded amount.