Business Hilights
Tracking Nigeria's Headline Business News Online

Oil Mining Lease (OML) 30 peaks at 75,000bpd from zero level in March 2017

Just as oil price remains on the rising stretch, a strong boost to more income for the Nigerian economy was confirmed on Monday as Oil Mining Lease (OML) 30 peaked at 75,000 barrels per day from zero level in March 2017.

Being one of the onshore field in Niger Delta, the licence covers 1,095 sq km located about 35km East of Warri in Great Ughelli belt, it contains 11 fields, Afiesere, Eriemu, Evwreni, Oweh, Olomoro-Oleh, Kokori, Oroni, Uzere West, Osioka, Ofa and Okpolo.

The fields were discovered between 1961 and 1966. According to operator of the block, Salvic Petroleum Resources on behalf of Heritage Energy Operational Services Ltd (HEOSL), the feat was achieved without drilling any new wells, but with a robust work programme of creative and innovative solutions that optimised production and unlocked value from old legacy infrastructure and equipment.

Business Hilights recalls that earlier in March 2017, Salvic had signed a Technical Services Agreement (TSA) with the operator of the oil block, Heritage Energy Operational Services Limited (HEOSL), to handle all aspects of operations and crude oil production in OML30, including technical support services, security, operation & management (O&M), community relations and other stakeholder management, corporate social responsibility (CSR) and management of the 87 kilometre Trans Forcados Pipeline (TFP).

Industry observers say with the feat, Nigeria will continue to increase its daily output as the OPEC’s cut exemption regime is still running.

At the heat of finding solutions for the stability of global oil price by the cartel, members agreed on a cut that will hobble the market into an artificial scarcity that will pave way for rising price regime which was successful after all.

Part of the deal by OPEC was to exempt Nigeria and three other members due to observed restiveness within their production corridors.