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First E&P strikes oil at oil bloc divested by Chevron

First Exploration and Production (First E&P) company yesterday said that it has struck oil from an oilfield it acquired following the divestment of Chevron Nigeria Limited (CNL) from the asset located off Bayelsa coastline.

 

Chevron had in 2015 divested from OMLs 83 and 85, while the asset was acquired by First E&P, an indigenous firm now operating the oilfields in a joint venture agreement with the Nigerian National Petroleum Corporation (NNPC).

 

Following the development, First E&P had subsequently applied to the Minister of Petroleum Resources for an Oil Pipeline Licence to be constructed within the oil block, Oil Mining Lease (OML) 85. It was learnt that the pipeline was to link oil wells withing the OML 85 to a Floating Storage Production and Offloading (FSPO) vessel christened Abigail Joseph, deployed by the oil firm.

 

FSPO vessels drill, process, store and load crude from offshore oil fields eliminating the need for long pipelines to land facilities where the crude was separated from water and associated gas and sent back to the export terminals. According to the application dated December 1, 2020 at the Bayelsa State Ministry of Lands, Yenagoa, the proposed 23 kilometres pipeline had a thickness of 3.7 inches and 12 inch diameter.

 

The application notice urged parties whose interest would be adversely affected by the proposed undersea pipeline to indicate their objections orally or in writing, to the Director-General, Bayelsa State Ministry of Lands, Housing and Urban Development.

 

The statutory notice, however, stated that issues of compensation rates payable by the operator of OML 85 shall not form the basis of any objection.

 

The notice explained that the Ministry of Lands, Housing and Urban Development, shall on January 12, look into the objections raised by members of the host communities surrounding the oil facility.

 

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