Nigeria to increase oil output
The country and its co-partners in the Bonga oil block will also earn estimated revenue of US$41 billion (N5,25 trillion) from export of crude oil over the next 20 years lifespan of the deep offshore field, the Nigerian National Petroleum Corporation (NNPC) disclosed. Daukoru who is also Opec’s president made the comments after meeting South Korean President Roh Moo-hyun yesterday. Over the past year, according to him, Nigeria has begun pumping oil, Shell’s 225 000 bpd Bonga field and ExxonMobil’s 150 000 bpd field, with more developments led by Total and Chevron expected to follow over the next two years. The offshore fields have typically been immune to the kind of militant attacks that have shut in 550 000 bpd of onshore production in the Niger Delta, a quarter of Nigeria’s total. But an unprecedented raid on a rig 75km offshore last Friday had heightened fears about the safety of more remote facilities when gunmen kidnapped eight foreign workers, who were freed Sunday, in that attack. Opec members agreed earlier this week to leave oil output unchanged near its full capacity, news that failed to soothe oil markets as United States crude traded up US$1,10 at US$73,43 a barrel yesterday, a figure which is within US$2 of a record high. A greater volume of spare capacity could help Opec stem an over three-year oil price rally, fuelled in part by fears that producers and refiners would be unable to compensate supplies in the case of any sudden, unexpected outages. Meanwhile, the country and its co-partners in the Bonga oil block will earn estimated revenue of US$41 billion (N5,25 trillion) from export of crude oil over the next 20 years lifespan of the deep offshore field. Also, the Nigerian National Petroleum Corporation (NNPC) has set for itself, a crude oil production target of 3,0 million barrels per day (bpd) for this year from both joint venture operations and output from fields operated under the production sharing contract (PSC). The general manager of the National Petroleum Investment Management Services (NAPIMS), Abiye Membere, disclosed at a Petroleum Roundtable talks in Lagos that oil exports from the Bonga deepwater field would fetch US$2 billion annually at average oil price of US$60 per barrel and a production rate of 225 000 bpd. Bonga field, operated by Shell Nigeria Exploration and Production Company (SNEPCO), went into production in November, 2005 and recorded its first shipment of crude last January. According to the estimates from NAPIMS (the NNPC subsidiaries overseeing Federal Government’s investments in oil operations), Shell may be able to recoup the US$3,6 billion spent in bringing the field up to production within the next two years, thereby paving way for the Nigerian government to begin to have a share from the profit generated from oil exports from the field. ‘ This Day.