Completion of the Umugini Pipeline announced

Oando Energy Resources Inc., Nigeria, has announced the completion of the 45 000 bpd, 51 km Umugini pipeline. The pipeline will provide an alternative evacuation route for crude oil produced from the Ebendo Field through the Trans Forcados export pipeline.

Following the successful drilling of Ebendo wells 5, 6, and 7 over the past 12 months, oil production capacity within OML 56 has grown to 7140 boe/d gross for OER and Energia Limited the operator of the asset (3052 boe/d net to OER).

However, export had been constrained at 3093 boe/d (1322 boe/d OER Share) via the Agip operated Kwale-Brass NAOC/JV infrastructure, in which OER currently has a 20% interest through the recent US$1.5 billion acquisition of ConocoPhillips Nigerian Oil & Gas Business.

The completion and commencement of operations on the Umugini pipeline ensures that the Ebendo field can now produce at its full capacity.

Commenting, Pade Durotoye, CEO Oando Energy Resources said: "The completion of the Umugini pipeline now allows us to maximize the value of our investments to date on the asset and provides the latitude for further profitable development of prospects and resources identified in Ebendo."

Ebendo is located onshore, in the central Niger Delta approximately 100 km north-west of Port Harcourt and covers an area of 65 km² (16 062 acres). The License includes two fields, Ebendo (producing) and the Obodeti field (undeveloped). Oando Energy Resources holds a 42.75% working interest on the field.

Edited from source by Elizabeth Corner

Read the article online at: https://www.worldpipelines.com/project-news/05122014/completion-of-the-umugini-pipeline-announced/