Niger Delta Petroleum Resources Ltd (NDPR), the wholly owned subsidiary of NDEP, is pleased to report that its pioneering Farm Out Agreement (FOA) for the Ogbele Oil and Gas Field, has been confirmed for the duration of the field’s life.
The FOA involving the NNPC/Chevron JV was signed in August 2000, which granted NDPR the beneficial interest for the Ogbele marginal oil field, located within OML 54, Rivers State. The Department of Petroleum Resources (DPR), recently issued a letter to NDPR, confirming the validity of the Farm-Out Agreement for the lifespan of the field, having met the requisite precondition of bringing the field to oil production.
NDPR strongly welcomes this pronouncement, which acknowledges the Federal Government’s desire to ensure a more conducive environment for indigenous operators. Given NDPR’s ongoing work to develop the Ogbele Oil and Gas Field and its long term commitment to its host communities, this confirmation is welcome news to the operating Company.
Since August 2000, NDPR has invested heavily in the Ogbele Field to achieve its full potential. To date, 5 wells have been successfully drilled, a 1000 bopd diesel ‘Topping Plant’ has been installed and a 10,000 bopd capacity Flow Station has been completed. In order to harness the value of the entire oil and gas chain, a 100 mmscf/d gas processing plant has been built, with a 20km pipeline to transport the gas safely to the NLNG Train 6 at Rumuiji, Rivers State. An extensive Well Development Programme is scheduled for 2011, and the confirmation of the FOA’s duration will remove any uncertainty regarding the license of Ogbele.
‘This unprecedented concession, granted by the Federal Government, is greatly appreciated by our operating Company, NDPR’, said Dr ‘Layi Fatona, MD, NDEP. ‘Not only does the confirmation of the FOA demonstrate a commitment to supporting indigenous Marginal Field Operators, it also provides us with a more stable environment for the continuation of our long term oil and gas development programme at Ogbele.’
Dr Fatona continued, ‘With the forthcoming passage of the Petroleum Industry Bill (PIB), we continue to hope for improved regulations that will empower independent and indigenous operators.’
– Ends –