Total announced that its subsidiary Total E&P Nigeria Limited (TEPNG), operator of the NNPC/TEPNG joint venture with a 40% interest, has launched the OML 58 upgrade project. Nigerian National Petroleum Corporation (NNPC) owns the remaining 60% interest of the joint venture. OML 58 is located onshore Nigeria (Rivers States), approximately 85 kilometers North West of Port Harcourt in the Niger Delta.
The OML 58 Obite gas treatment plant has been on stream since December 1999. The OML 58 upgrade is designed to increase gas production capacity from 10.6 million cubic meters per day (370 mmscfd) at present to 15.6 million cubic meters per day (550 mmscfd), and also increase oil and condensate output by around 15,000 barrels per day bringing the total output to 140,000 barrels of oil equivalent per day.
This project is expected to increase production as from 2011, and will comply with the Federal Government's "Flare Out" regulations, improve safety and extend the life of existing installations as well as enhancing oil recovery.
It will develop more than 280 million barrels of oil equivalent of proved and probable reserves. A second stage of the project is under evaluation in order to develop additional proved and probable reserves (about 230 Mboe) using these upgraded facilities.
The objective of the project is to contribute to meet the growth of domestic demand for gas in Nigeria in line with the Federal Government of Nigeria expectations, as well as to supply gas to Nigeria LNG.
In line with Total's commitments, the upgrade project will contribute significantly to Nigeria's local content policy -- over 90% of the total man hours worked on the project will be performed locally.
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