Nigerian oil refineries resume production

[sportscribe]

Back on track? Nigeria's oil refineries resume

By Florian Plaucheur ,AFP
September 21, 2015, 12:00 am TWN

PORT HARCOURT, Nigeria -- Bright orange flames flare upwards from a pencil-thin chimney at the Port Harcourt Refining Company, sending thick black smoke into the white clouds above Nigeria's southern oil hub.
On the ground, workers in boiler suits and hard hats inspect the tanks, valves and gauges around the metal pipes that stretch up, down and across the facility.

In the hush of the control room, away from the hiss of steam and hum of heavy machinery, the refining process is monitored closely on a bank of computer screens.

PHRC boss Bafred Enjugu sees it as a sign that Nigeria — Africa's biggest oil producer — is finally "domesticating" the refining of crude into products, thus improving its energy security and ending a reliance on costly imports.

The talk is of job creation, national pride and the chance to help revive an economy badly hurt by the fall in global oil prices as well as providing fuel for the increasing demands of a growing population.

"To give up on the refineries is like giving up on Nigeria. That's how strongly I believe about it and we can't afford to do that," the PHRC managing director told AFP.

"We can't go home and tell our children that we have failed to provide the right platform to take off."

Stop the Rot

The Port Harcourt refinery is Nigeria's oldest, built in 1965, nine years after oil was found under the marshy soil and creeks of the delta, where the Niger river runs off into the Gulf of Guinea.

Refineries in nearby Warri, and Kaduna in the north central region, were built in the years that followed, while a new plant was added to the same site in Port Harcourt in 1989.

In recent years, however, the facilities have been more idle than operational.

OPEC-member Nigeria instead sent much of the 1.8 million barrels of crude it now produces daily to foreign facilities, buying back refined products such as petrol at market prices.

By the end of Goodluck Jonathan's presidency, just how reliant Nigeria had become on imports became clear when a dispute between marketers and the government caused a crippling fuel shortage.

Muhammadu Buhari, elected on an anti-corruption ticket, replaced Jonathan in late May, days after the blockade was lifted, and vowed to end years of graft and mismanagement.

Back on track? Nigeria's oil refineries resume


Buhari is putting in that work.

 

[Scientific Playa]

Buhari and Exxon-Mobil Chairman Rex Tillerson

Exxon Mobil reports first oil in Nigerian project
Posted on September 16, 2015 | By Jordan Blum


No. 2 Exxon Mobil

Revenue: $382.6 billion

Profits: $32.5 billion


Texas energy cos. make 2015 Fortune 500
Image 1 out of 30
Christophe Morin /GT / Bloomberg
No. 2 Exxon Mobil

Revenue: $382.6 billion

Profits: $32.5 billion

(Pictured, Exxon Mobil CEO Rex Tillerson)
Exxon Mobil said Wednesday it began producing oil ahead of schedule for the second phase of a major project offshore of Nigeria.

The oil giant is expecting 65,000 barrel a day in additional oil production from its Erha North Phase 2 project, in which Royal Dutch Shell owns a minority stake.

The project is a deep-water subsea development located 60 miles offshore Nigeria in 3,300 feet of water and four miles north of the initial Erha field, which has been producing oil since 2006. The Erha North Phase 2 project includes seven wells connected to the existing Erha North floating production, storage and offloading vessel, called an FPSO.

Exxon Mobil estimates the project will produce an additional 165 million barrels from the existing Erha North field, which is expected to see its total production grow to about 90,000 barrels per day.

“Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from Exxon Mobil’s disciplined project management approach and expertise,” said Neil Duffin, president of the Exxon Mobil Development Company, in the announcement.

The company attributed being ahead of schedule to the performance of Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment and offshore installation.

Despite low oil prices globally, the energy giant is projecting to grow its production volumes by 2 percent this year to 4.1 million oil barrels of oil equivalent per day. Exxon Mobil is crediting the start up of projects completed last year and in early 2015.


Exxon Mobil Begins Production at Erha North Offshore Nigeria Project
By Dow Jones Business News, September 16, 2015, 10:45:00 AM EDT

By Chelsey Dulaney

Exxon Mobil Corp. said Wednesday that it has begun production at its new Erha North project offshore Nigeria five months ahead of schedule, while affirming its forecast for 2% production growth this year.

The deepwater project is located 60 miles offshore Nigeria and inclues seven wells, with expected peak production of 65,000 barrels of oil a day. It will be tied to an existing Erha North floating production, storage and offloading vessel, helping reduce infrastructure.


Exxon said the project came in ahead of schedule and $400 million under budget due to the performance of its Nigerian contractors.

The U.S. oil giant also on Wednesday affirmed its forecast for 2% production growth in 2015 to 4.1 million oil- equivalent barrels per day.

While Exxon's profit has tumbled in recent quarters amid the drop in crude prices, its production has continued to grow. In the second quarter, the company's profit tumbled 52%, while production improved 3.6% to 4 million oil- equivalent barrels per day.

Shares of Exxon, down 20% this year, added 1.5% to $73.98 a share in morning trading.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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Read more: Exxon Mobil Begins Production at Erha North Offshore Nigeria Project

Read more: Exxon Mobil Begins Production at Erha North Offshore Nigeria Project

The Erha North field was discovered in 2004 and initial production commenced in 2006. Exxon subsidiary, Esso Exploration and Production Nigeria Limited, operat

 

[Hiphoplives4eva]

Back on track? Nigeria's oil refineries resume


Buhari is putting in that work.

The refineries coming online was mostly the work of Goodluck, but i'll let you propagandists cook.

 

[sportscribe]

The refineries coming online was mostly the work of Goodluck, but i'll let you propagandists cook.

Was the $20 billion absconded from NNPC under the previous government the work of Jonathan's cronies or nah?

I will let you crony capitalists cook.

 

[ADevilYouKhow]

Must've got that payola flowing in the right direction