LAGOS (Dow Jones Newswires), May 18, 2010
Shell said Tuesday that a project nearing completion in the Niger Delta is expected to produce more than 700,000 barrels of oil and 1 billion cubic feet of gas a day.
More than 30 wells are being drilled for the Gbaran-Ubie Integrated Oil and Gas Project in southern Bayelsa State. A central processing facility has been installed to treat oil and gas, Shell said in a statement.
"The Gbaran project is a world-class development that will boost Nigeria's oil and gas resources significantly," the statement quoted the project manager, Okee Elechi, as saying. "It will help meet government targets to reduce (gas) flaring, provide more energy for Nigerians and increase exports of liquefied natural gas."
Nigeria, the world's eighth-largest oil exporter, derives more than 90% of its foreign earnings from crude oil sales.
The project is scheduled for completion between 2010 and 2011, the firm said, adding that it could not give a precise date.
It will deliver gas to generate power in the Niger Delta region, where communities have complained of lack of infrastructure, including power, hospitals, schools, potable water and good roads.
Militants in the region are fighting for a fair share of oil and gas revenues derived from their region.
The oil the project produces will be exported from the Shell Petroleum Development Co.'s Bonny crude terminal, the statement said.
By the end of last year, the project, which began in 2005, was more than 80% complete with 300 kilometers of pipeline built, it added.
Copyright (c) 2010 Dow Jones & Company, Inc.
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