Green Energy Secures $350m Lifeline For Otakikipo OML - OrientEnergyReview

Green Energy Secures $350m Lifeline For Otakikipo OML

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Chibisi Ohakah, Abuja

A consortium of international and local financiers has advanced a $350 million financing package to Green Energy International Limited (GEIL), for the development of the second phase of the Otakikpo Marginal Field in Oil Mining Lease (OML) 11 in Rivers State.

The financiers include an oil services giant, London based international bank, a prominent crude oil off-taker and EPIC contractor. The company director, corporate Affairs of the Green Energy, Mr Olusegun Ilori said the financing package said the deal, which would make the Otakikpo field a crude processing and exporting hub in the Eastern Niger Delta was conceived to unlock the potential of other commercially stranded marginal fields in the area.

Ilori said the second phase development involves the drilling of additional wells at Otakikpo Marginal Fields, which will significantly increase the field production from the present 6,000 barrels of oil per day, bopd, to 20,000 bopd and the expansion of the processing facilities from 12,000 to 50,000 bopd to adequately handle production from the other fields.

“The project also involves the construction of 1.3 million barrels onshore terminal and a 20 kilometers export pipeline and crude oil loading system for efficient export of the expected production. It is to be noted that the GEIL has already secured the approval to construct (APC) for the onshore terminal and the associated export infrastructures. The onshore terminal will significantly reduce the field production OPEX, increase operational efficiency, improve security and contribute tremendously to the economy of the local communities.

“The onshore terminal will be located in the Atlantic Industrial Park- Ikuru Town, is also facilitated by GEIL, as a gas-powered commercial and high-value proposition anchored on the power to be generated from the field’s gas production. GEIL has recently obtained a 40 megawatts power generation license from the NERC for the power generation that will service the industrial park,” Ilori said

He quoted the chairman of Green Energy International Limited, Professor Anthony Adegbulugbe, as describing the deal as a major milestone in the oil and gas industry, particularly for the marginal field, coming on the heels of a successful commencement of production in 2017 and recent conclusion of the interpretation of the 3D seismic data acquired by the company to maximize the Otakikpo field opportunities.

The chairman said the company stakeholders are excited that the $350 million financial package enhances the vision of the company as an integrated energy company that ensures optimal utilization of hydrocarbon resources for the benefit of the nation and local communities around the field. The company, he stated, stands to benefit from the consortium’s excellent international project and field management experiences and expertise, the statement further quoted Adegbulugbe.

He thanked all the partners in the consortium during the MOU signing ceremony, for working harmoniously together to advance the project up to this stage. On the gas monetisation programme, he said Green Energy is poised more than ever before to develop the oil and gas field with the Small Scale Gas Utilization Project (SSGUP), as the backbone of the field development activities to ensure compliance with the zero gas flare policy the federal government.

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