Nigeria’s oil production output to the global market could increase by 225,000 barrels per day, following the completion of the 2022 Turnaround Maintenance (TAM) of the Bonga floating production storage and offloading vessel (FPSO) by Shell Nigeria Exploration and Production Company Limited (SNEPCo).
The expected increase in production will boost Nigeria’s foreign exchange earnings as the country is grappling with the paucity of funds, scarcity of forex and fluctuating value of the naira. SNEPCo’s Media Relations Manager, Mrs Abimbola Essien-Nelson, confirmed the completion of the TAM in a statement.
The statement was titled: ‘SNEPCo’s Bonga FPSO completes 2022 Turnaround Maintenance (TAM).’ She said: “Shell Nigeria Exploration and Production Company Limited (SNEPCo) is pleased to announce that the 2022 Turn-around Maintenance (TAM) of the Bonga floating production storage and offloading vessel (FPSO) has been completed.
“The 225kbopd capacity FPSO was shut down on October 18, 2022, to carry out statutory inspections, recertifications and other critical asset integrity restoration activities.
“The 2022 TAM, which was originally planned for 30 days was completed in 22 days on November 9, 2022, thanks to excellent front-end planning and flawless execution. “Commissioning and start-up activities are in progress and will culminate in the ramp-up of oil and gas production in the coming days.”
Essien-Nelson had in a statement in September, announced that the Bonga Floating Production Storage and Offloading (FPSO) vessel was scheduled for TAM in October.
She said the maintenance would include statutory recertification and critical asset integrity activities, adding that the scheduled TAM of the offshore Bonga asset would be carried out with safety as a top priority.
The expected oil production increase will further boost the production output of Nigeria as the country has started to increase its oil production supply to the global market according to the Monthly Oil Market Report (MOMR) of the Organisation of the Petroleum Exporting Countries, (OPEC) published on Monday. The report stated that Nigeria’s oil output production increased by 77,000 barrels per day in October 2022.
According to OPEC, Nigeria’s global oil supply in October based on direct communication, was 1.014 million barrels per day as against that of September which was 938,000bpd, indicating an increase of 77,000bpd. The country’s daily production was 937,766 in September and 972,000bpd in August, which meant declined revenue for the Federal Government.
The NUPRC in its crude oil and condensate production data for July 2022 stated that Nigeria’s crude oil production also decreased in July to an average of 1.08 million barrels per day (bpd) from 1.16 million the previous month. It also said that Nigeria’s oil production with the addition of condensate, decreased in July by 6.42 per cent to 1.31 million bpd from 1.40 million in June.
Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil — usually separated out of a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions.
OPEC in its in oil Market Report for July 2022 said Nigeria’s crude oil production was 1.238 million bpd (bpd) in June which is a decline from the nation’s OPEC allocation of 1.766 million bpd; Nigeria’s crude oil production quota in May was 1.753 million bpd; June, 1.772 million bpd; July, 1.799 million bpd and August, 1.826 million bpd.
The 1.024 million bpd production (through primary communication) in May was about 195,000 bpd less production when compared with April’s total of 1.219 million bpd, according to OPEC