OML29

Last updated
OML 29 (Oil Mining Lease 29)
Country Nigeria
BlockOML29
Offshore/onshoreOnshore
Operators Aiteo Eastern Exploration and Production Company
Partners NNPC
Production
Producing formationsAgbada formations
OML 29 OML29Nigeriamap.jpg
OML 29

OML 29 is also known as Oil Mining Licence 29. Oil Mining Licence OML is one of the two types of licences issued to oil producers in Nigeria "with validity periods ranging from 5 to 20 years respectively." [1] OML29 is a large block located in the southeastern Niger Delta containing 11 oil and gas fields. [2] OML29 stretches over an area of 983 square kilometres. It includes the Nembe Oil Field, Santa Barbara Oil Field and Okoroba Oil Fields. It also include related facilities like the Nembe Creek Trunk Line NCTL. A 100 kilometres long pipeline with a capacity of 600 thousand barrels per day. [3]

Contents

Historical overview

The initial lease was granted by the Federal Government of Nigeria to Shell Petroleum Development Company in 1964 and renewed after twenty-five (25) years in July 1989, for a term of thirty (30) years expiring in June 2019. OML29 licence was formally held by Shell Petroleum Development Company of Nigeria Ltd Joint Venture (SPDC), comprising Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited. [4]

In September 2015, Aiteo Eastern Exploration and Production (E&P) Company Limited, a subsidiary of Aiteo Group announced their acquisition of (OML) 29 and the Nembe Creek Trunk Line (NCTL) and related facilities in the Eastern Niger Delta from the Shell Petroleum Development Company of Nigeria Limited (SPDC) at $1.7 billion. [5]

Production

OML29 consists of 9 fields including the iconic Oloibiri Oilfield (1st Commercial Oil Discovery in Nigeria) and holds 2.2 billion barrels of oil equivalent, BOE, while Its hydrocarbon fields could deliver as much as 160,000 barrels of oil per day, and 300 million cubic feet (8.5 million cubic metres ) per day at standard conditions at peak output. [6] It has 240,000 barrels of oil per day and 50 million cu ft (1.4 million m3) per day at standard conditions of installed production capacity most of which have been impacted by sabotage, vandalism and theft within the Niger Delta Region. [7] OML29 is currently producing from three fields (Nembe, Santa Barbara and Odeama Creeks) with over 120 thousand barrels (19,000 cubic metres ) of oil per day production potential.

OML29 produced around 43,000 barrels of oil equivalent per day (100 per cent) in 2014. [8] Wood Mackenzie, a global leader in commercial intelligence for the energy, metals and mining industries describes OML29 as “the biggest producing onshore oil field in the ‘SPDC/ NNPC’ JV”, and produced on average, around the equivalent of 43,000 barrels (6,800 m3) of oil per day during 2014. [9]

According to the Africa Oil & Gas Report, OML29 averaged about 50,000 barrels (7,900 m3) of oil per day until mid 2015, with 22,500 barrels (3,580 m3) of oil per day net to AITEO, and has now[ when? ] gone down to 35,000 barrels (5,600 m3) of oil per day. [10]

In March 2017, Aiteo Group announced that production levels at OML 29 had peaked at 90,000 barrels (14,000 m3) per day, tripling existing production records for the onshore block. [11] Announcing the news, Aiteo's CEO, Benedict Peters, highlighted several existing and developing projects engineered to raise asset production at OML 29 to over 150,000 barrels (24,000 m3) per day. [12]

Related Research Articles

Petroleum industry in Nigeria Largest oil and gas producer in Africa

Nigeria is the largest oil and gas producer in Africa. Crude oil from the Niger delta basin comes in two types: light, and comparatively heavy – the lighter around 36 gravity and the heavier, 20–25 gravity. Both types are paraffinic and low in sulfur. Nigeria's economy and budget has been largely supported from income and revenues generated from the petroleum industry since 1960. Statistics as of February 2021 shows that the Nigeria's oil sector contributes to about 9% of the entire country's GDP. Nigeria as the largest oil and gas producer in Africa, is a major exporter of Crude oil and petroleum products to the United States of America. In 2010, Nigeria exported over one million barrels per day to the United States of America representing 9% of the U.S total crude oil and petroleum products imports and over 40% of Nigeria exports.

Shell Nigeria Nigerian regional subsidiary of Shell plc

Shell Nigeria is the common name for Shell plc's Nigerian operations carried out through four subsidiaries—primarily Shell Petroleum Development Company of Nigeria Limited (SPDC). Royal Dutch Shell's joint ventures account for more than 21% of Nigeria's total petroleum production from more than eighty fields.

Afren

Afren plc was an international independent oil exploration and production company. It was formerly listed on the London Stock Exchange, however it was de-listed in 2015. The company was placed in administration in July 2015.

Oando Nigerian multinational energy company

Oando Plc is a Nigerian multinational energy company operating in the upstream, midstream and downstream.

Oyigbo known as Obigbo by the inhabitants, is a town 30 kilometers from the port city of Port Harcourt and a local government area of Rivers State, Nigeria.

Addax Petroleum

Addax Petroleum was established in 1994 and since August 2009 has been a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide. Addax Petroleum was an international gas and oil production and exploration company mainly focused on the Middle East, the North Sea and Africa. Since 1994, the company become one of the largest oil producers in West Africa.

Oru East LGA in Imo State, Nigeria

Oru-East is a Local Government Area of Imo State, Nigeria. Its headquarters is at Omuma. The following are towns that make up Oru East: Akatta, Akuma, Amagu, Amiri, Awo-Omamma, and Omuma.

Okoro Oilfield Oilfield

Okoro Oilfield is an oilfield located 12 kilometres (7.5 mi) offshore Nigeria in an average water depth of 14 metres (46 ft) in the eastern Niger Delta. The field is located in OML 112 block. The Okoro Oilfield is operated and owned entirely by Amni.

Oloibiri Oilfield is an onshore oilfield located in Oloibiri in Ogbia LGA of Bayelsa State, Nigeria, about 45 miles (72 km) east of Port Harcourt in the Niger Delta. Oloibiri field is about 13.75 square kilometres (5.31 sq mi) and lies in a swamp within OML 29

Seplat Petroleum Development Company (SEPLAT) is a Nigerian independent oil and gas company listed on both the London and Nigerian Stock Exchanges with a strategic focus in the Niger Delta of Nigeria.

Eland Oil & Gas PLC is a Nigeria focused upstream oil and natural gas exploration and production company listed on the AIM in London with operational offices in Abuja, Nigeria and Aberdeen, Scotland.

Taleveras is an African business conglomerate, privately owned with business interests in energy and infrastructure, oil and gas exploration, production, trading and supply, power and construction. Taleveras’ offices are located in London, Geneva, Abuja, Lagos, Abidjan, Cape Town and Dubai.

Chris Ogiemwonyi Nigerian politician and businessman

Engr Christopher Aigbovbiosa Ogiemwonyi is a Nigerian politician and businessman. He was a former Minister for Works at the Nigeria Federal Ministry of Works. He was the retired group executive director of the Nigerian National Petroleum Corporation. As of January 2020, he is the President of Energy and Engineering Technology Consulting Group. He has held this position since 2011.

Izombe in the northeast of Niger Delta is an oil town in Njaba River basin, Imo State Southeastern Nigeria.

Benedict Peters is a Nigerian billionaire who founded the Aiteo Group, Nigeria's largest indigenous oil producing firm. As of November 2014, he had an estimated net worth of US$2.7 billion. He is ranked by Ventures Africa as the 17th richest person in Africa and the 7th richest in Nigeria.

Aiteo Group is an integrated, global-focused Nigerian energy conglomerate founded in February 2008. The company is the successor entity to Sigmund Communnecci Limited. The company focuses in oil and gas exploration and production; bulk petroleum storage; refining of petroleum products; trading, marketing and supply as well as power generation and distribution.

Nembe Creek Trunk Line (NCTL) is a 97 kilometre, 150,000 barrels of oil per day pipeline constructed by Royal Dutch Shell plc and situated in the Niger Delta region of Nigeria. "The Trunk Line is one of Nigeria's major oil transportation arteries that evacuate crude from the Niger Delta to the Atlantic coast for export." It is owned by Aiteo Group, which recently purchased it as part of the related facilities of the prolific oil bloc OML29 from Shell Petroleum Development Company, SPDC. By March 2015, the Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), completed the assignment of its interest in OML29 and the Nembe Creek Trunk Line to Aiteo Eastern E&P Company Limited, a subsidiary of Aiteo Group. The other joint venture partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited also assigned their interests of 10% and 5% respectively in the lease, ultimately giving Aiteo Eastern E&P Company Limited a 45% interest in OML29 and the Nembe Creek Trunk Line.

The Niger Delta Avengers (NDA) is a militant group in the Niger Delta region of Nigeria. The group publicly announced their existence in March 2016.

Onajite Okoloko Nigerian entrepreneur

Onajite Paul Okoloko is a Nigerian entrepreneur. He is currently Group Chief Executive Officer / Managing Director of Notore Chemical Industries Plc (“Notore”), he is also the Chairman of Midwestern Oil & Gas Limited (“Midwestern”) and the Chairman of Eroton Exploration & Production Limited (“Eroton”).

Chevron Nigeria Limited is a subsidiary of Chevron Corporation and it is one of the largest oil producers in Nigeria. It was previously operating in Nigeria under the business name of Gulf Oil Company until merger activities changed its name to Chevron Nigeria. After another merger by the parent company with Texaco, the Nigerian oil and gas assets of Texaco Overseas Petroleum Company of Nigeria were merged into Chevron.

References

  1. ↑ "Development of Nigeria's Oil Industry". Nigeria National Petroleum Corporation. Nigeria National Petroleum Corporation. Retrieved 24 February 2016.
  2. ↑ "OML 29". Wood Mackenzie. Wood Mackenzie. Retrieved 23 February 2016.
  3. ↑ "SPDC completes sale of oil mining lease 29 and Nembe Creek Trunk Line in Nigeria". Shell Global. Royal Dutch Shell Plc. Retrieved 24 February 2016.
  4. ↑ "SPDC completes sale of oil mining lease 29 and Nembe Creek Trunk Line in Nigeria". Shell Global. Royal Dutch Shell Plc. Retrieved 24 February 2016.
  5. ↑ Ugwuanyi, Emeka (18 May 2015). "Aiteo 'meeting obligations on OML 29'". The Nation. Vintage Press Limited. Retrieved 24 February 2016.
  6. ↑ "Aiteo acquires Shell's OML 29, Nembe pipelines - Vanguard News". Archived from the original on 2014-10-15.
  7. ↑ "Rising crude theft activities threaten daily export of 140,000 barrels of oil". Shell Nigeria. Shell Petroleum Development Company of Nigeria Ltd. Retrieved 24 February 2016.
  8. ↑ "NNPC, Shell, Aiteo Conclude Sale of OML 29, Nembe Creek Trunkline". Thisday Newspaper. Leaders & Company Limited. 26 March 2015. Retrieved 24 February 2016.
  9. ↑ "OML 29". Wood Mackenzie. Wood Mackenzie. Retrieved 23 February 2016.
  10. ↑ "With Plunging Output, Aiteo Takes Over OML 29 Operatorship". Africa Oil and Gas Report. Festac News Press Ltd. Retrieved 24 February 2016.
  11. ↑ "Aiteo peaks 90,000 bpd output in one year". Business Day. 9 March 2017. Retrieved 11 May 2017.
  12. ↑ "Nigeria's Aiteo Group achieves 90,000-bopd output rate in one year". Oil Voice. 10 March 2017. Retrieved 11 May 2017.

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.