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Pioneering the Development of Marginal Fields
The Niger Delta oil-producing region is characterized by many
non-producing oil and gas assets, which are considered too small and
thus not desirable enough to be considered economically viable
investments by larger operating companies.
In our attempt to take advantage of these development opportunities, the company has taken the initiative to
set up a tight knit, highly skilled team of exploration and production
professionals. Backed by robust funding and an experienced management
team, GEL has been the pioneering force in the successful acquisition
of these highly profitable smaller assets in Nigeria.
Although we had identified several dormant marginal field assets
within the portfolios of many multinational oil companies, we saw
Chevron Nigeria Limited as a company, which shared our desire and vision
to implement new operational models providing a sustained and
profitable revenue from these dormant oil assets. In 1996, a Farm-Out
Agreement was negotiated purely on commercial terms, the first of such
in Nigeria, between NDPR and the NNPC/Chevron JV. In 2000, the Farm-Out
Agreement was executed for the assignment of the Ogbele Field in OML 54
and the right of first refusal on the Omerelu Field, in OML 53.
Realising Gas Potential
GEL through its operating subsidiary is harnessing the gas resources in its first
producing field to derive maximum value from its operations. In addition, it aims at
full compliance to the Federal Government’s zero gas flaring policy ahead of the January 2012 deadline.
To this end, GEL has invested in extensive gas processing infrastructure and concluded a
pioneering Gas Sales Agreement to formalize the supply of gas to the NLNG Train 6 at Bonny, Nigeria.
This agreement will allow GEL to boost Nigeria’s gas conservation and utilization while also achieving
zero gas flare from its producing assets.
Refining Capacity
To further increase GEL’s resources and production, the company will refine crude oil, through the
installation of a 1000 bpd Diesel Topping Plant. The plant will come on
stream by year-end, 2012.
This will promote more sustainable operations and reduce GEL’s external dependency for its field operations.
Building Local Content
As an indigenous operating Company, GEL is a staunch supporter of local content
and has historically preferred the use of local service companies.
GEL is committed to looking internally for its resources, which
is also reflected in the staff hiring policy.
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Operations
