Exxon Mobil Corporation announced Wednesday that its subsidiary, Esso Exploration and Production Nigeria Limited, has started oil production ahead of schedule at the Erha North Phase 2 project offshore Nigeria.
The project, which started oil production five months early and was $400 million under budget, is estimated to develop an additional 165 million barrels from the currently producing Erha North field. Peak production from the expansion is currently expected to be 65,000 barrels of oil per day, which will increase total Erha North field production to approximately 90,000 barrels per day.
Neil W. Duffin, president of ExxonMobil Development Company, commented in a company statement:
“Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise. We are able to create additional shareholder value by optimizing existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”
ExxonMobil expects to increase its global production volumes this year by 2 percent to 4.1 million oil-equivalent barrels per day. The volume increase is supported by the ramp-up of projects completed in 2014 and the expected startup of major developments in 2015. Discovered in 2004, the Erha North field commenced initial production in 2006. Operator Esso Exploration and Production Nigeria Limited holds a 56.25 percent interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75 percent share.
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