This is sequel to completion of all civil and pipeline works associated with the field.
The exert date of production commencement as at press time was yet to released by the company.
OER as technical service provider holds a 40 percent working interest in the field while NEPN holds 60 percent together brought the field from conceptualization, through development, to first oil delivery.
The crude processing facility according to statement from OER was commissioned in the fourth quarter of 2014 but commercial production was delayed until the completion of the associated cluster crude delivery and sales infrastructure into the Qua Iboe Terminal.
“We are delighted to have achieved this milestone, having taken this field through the full cycle of asset development, from drilling to facility engineering, construction and commissioning, and also increasing our organic production contribution from our portfolio,” Pade Durotoye, CEO OER said in the statement.
He continued “We will now be focusing our attention on maturing the potential of this field through seismic acquisition and interpretation, and a possible multi-well drilling program.
“We hope the Qua Iboe field will follow in the footsteps of our successful Ebendo field, where production has increased from 900bopd (gross) at inception to over 7,500bopd (gross) through the identification and drilling of new reservoirs in the field.”
The statement explained that Oando The identified the asset in 2012 and an agreement was reached with NEPN for OER to technically lead and fund certain aspects of NEPN’s costs until first oil.
This means that post recovery of all loan repayments, OER is entitled to 90 percent of NEPN’s sales proceeds from its 60 percent share of crude oil production until NEPN’s obligation is paid in full, with OER earning an additional 10% fee on the funded amount.
Qua Iboe is located at the mouth of the Qua Iboe River in the eastern Niger Delta and covers an area of 14 km2 (3,459 acres). The field is immediately adjacent to the ExxonMobil Qua Iboe Terminal.