News Post
Shell Nigeria and partners sign FID for Assa North/Ohaji South gas projects
Shell Petroleum Development Company of Nigeria Limited joint venture announced FID in Assa North/Ohaji South natural gas project, which is one of the Seven Critical Gas Development Projects of the Federal Government. Processed gas will be distributed through the Obiafu-Obrikom-Oben pipeline network.
The project, located in south-eastern Imo State, aims to position Nigeria as a regional hub for gas-based industries while complementing Federal Government’s aspiration for gas sufficiency for domestic consumption, power generation, and gas-based ammonia and urea fertilizers for farmers.
Nigerian National Petroleum Corp. expects the fields to produce 600 MMscfd of gas and says a doubling of output is possible. It estimates the resource at 4.3 tcf of gas and 215 million bbl of condensate.
Production is to start in the fourth quarter of 2019 or first quarter of 2020.
Assa North, on OML 21 operated by Shell, and Ohaji South, on OML 53 operated by Seplat Petroleum Development Co. of Lagos, are in communication with one another and will be developed under a 50-50 unitization agreement.
In OML 21, NNPC holds a 55% interest. Other partners besides Shell are Total Exploration & Production Nigeria and Nigeria Agip Oil Co. Seplat owns 40% of OML 53, NNPC holds the remaining interest.
In a 2015 environmental report, Shell said six exploration and appraisal wells had been drilled in the fields. It said initial development would include the drilling of six wells and construction of a gas processing plant.
Source: Shell Nigeria
Bamidele Odugbesan
Media Relations Manager
February 13, 2019
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