OML 28: Shell Starts Production At Gbaran-Ubie Phase 2 In Nigeria’s Niger Delta

by Ike Obudulu Last updated on August 26th, 2017,

The Shell Petroleum Development Company of Nigeria Ltd joint venture has started production at Gbaran-Ubie Phase 2, a key integrated oil and gas project in Bayelsa State, Nigeria’s Niger Delta region. Phase 2 follows the success of the first phase of the Gbaran-Ubie integrated oil and gas development, which was commissioned in June 2010. Peak production of around 175,000 barrels of oil equivalent (boe) per day is expected in 2019.

“Today’s announcement is a positive step for Shell’s global gas portfolio,” said Andy Brown, Shell’s Upstream Director. “It is also good news for Nigeria as gas from Gbaran-Ubie Phase 2 will strengthen supply to the domestic market and maintain supply to the export market.”

Eighteen wells have been drilled and a new pipeline constructed between Kolo Creek and Soku which connects the existing Gbaran-Ubie central processing facility to the Soku non-associated gas plant. First gas flowed from the wells in March 2016, with the facilities coming on stream in July 2017.

The Shell Petroleum Development Company (SPDC) is the operator of a joint venture between the government-owned Nigerian National Petroleum Corporation (NNPC, 55%), SPDC (30%), Total E&P Nigeria Ltd (10%) and ENI subsidiary Nigerian Agip Oil Company Limited (5%).

A detailed breakdown of the peak production of Gbaran-Ubie Phase 2 is approximately 864 million standard cubic feet of gas per day (MMscf/d) and 26,000 barrels of condensate per day.

OML 28 (Gbaran-Ubie)

OML 28 is an onshore block located in the central Niger Delta Region of Nigeria. It is part of the NNPC/Shell Joint Venture (JV). The block contains Gbaran-Ubie, a major integrated oil and gas project. Gbaran-Ubie is important because it harnesses significant volumes of associated gas that had previously been flared, while also commercializing several non-associated gas reserves. Gbaran-Ubie also involves the re-development of several oil reservoirs that produced prior to the integrated project design.

The project is developing production from an area of approximately 650 square kilometres in Bayelsa State. These fields were discovered in the 1970s but not fully developed because they contained mainly gas, for which there was little demand then in Nigeria. The project is currently drilling more than 30 new wells and has installed a central processing facility on site to treat both oil and gas. This will increase production from the area and enable SPDC to harness associated gas produced with oil.
It will help meet government targets to reduce fl aring, provide more energy for Nigerians and increase exports of liquefi ed natural gas.


Photo: A Section Of Gbaran-Ubie integrated oil and gas development in Nigeria’s Bayelsa State

When complete, new pipelines will deliver gas to generate power in the Niger Delta—supporting development in the region. It will supply the Bayelsa State power plant at Imiringi and a new 225-megawatt (MW) power plant being built in Gbaran by the Federal Government. The rest of the gas will be transported via SPDC’s new Eastern Gas Gathering System (EGGS-2) pipeline to Soku, in the eastern Niger Delta, and then onto the Nigeria Liquefied Natural Gas Company (NLNG- Shell share 25.6%) at Bonny, for export. The oil it produces will be exported from SPDC’s Bonny crude oil terminal.

Nigeria is the largest oil producer in Africa. Production comes from the Niger Delta: 75,000 square kilometres of onshore swamp and offshore shallow water, leading to a deep-water frontier up to 150 kilometers offshore. Nigeria produces high quality sweet crude, from the prolific Tertiary, Agbada Formation. Reservoirs tend to be small, with hundreds of small deposits throughout the delta.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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