In a significant move for Nigeria’s energy sector, the Nigerian National Petroleum Company Limited (NNPCL) has declared the initiation of oil production from the Akpo West field, situated on Oil Mining License OML2. This strategic development is poised to enhance Nigeria’s crude oil production, which stood at 1.418 million barrels per day (mbpd) in December 2023.
The Akpo West field, operated by TotalEnergies along with its partners, promises to add an extra 14,000 barrels of condensate daily to Nigeria’s production capacity. This is projected to amplify the country’s gas production to approximately 4 million cubic meters per day by 2028. The field is part of the discoveries on Petroleum Mining Lease (PML) 2, located 135 kilometers offshore. TotalEnergies, with a 24% stake, operates PML 2 in collaboration with CNOOC, Sapetro, Prime 130, and NNPCL.
Utilizing Existing Infrastructure
In a bid to cut costs and minimize greenhouse gas emissions, TotalEnergies plans to make use of the existing Akpo Floating Production Storage and Offloading (FPSO) facility. This approach not only ensures cost-effectiveness but also illustrates a commitment to environmental responsibility. It is anticipated that the project will have carbon emissions below 5 kg CO2e/boe, demonstrating a clear focus on sustainable practices.
In a related development, Ogun state is set to join the league of oil-producing states in Nigeria. The state governor has announced ambitious plans for oil exploration in Tongeji Island and Olokola, marking a new chapter in Nigeria’s oil production narrative.
The commencement of oil production from the Akpo West field, coupled with the potential of Ogun state, signifies a promising future for Nigeria’s oil industry. This not only positions Nigeria for a greater role in the global oil market but also presents an opportunity to bolster its economy, thereby impacting the lives of its citizens.