Oil production has commenced at the Madu Field, also known as Oil Mining Lease 85, a joint venture between the Nigerian National Petroleum Company Limited and First Exploration and Petroleum Development Company Limited.
The field, situated in shallow waters offshore Bayelsa State and operated by First E&P, is expected to produce an average of 20,000 barrels per day, as per a statement by NNPC’s spokesperson, Olufemi Soneye.
NNPC highlighted that the achievement underscores the effort of the administration led by President Bola Tinubu to maximize oil and gas production from the nation’s assets by creating a conducive environment for investors.
Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, lauded the commencement of oil production at the Madu Field as a significant milestone towards meeting production targets for revenue growth and economic advancement.
The JV made the Final Investment Decision on the development of the Madu Field and its counterpart, Anyala, in 2018.
Oil from the Madu Field will be processed at the Abigail-Joseph Floating Production Storage and Offloading Unit with a crude oil storage capacity of up to 800,000 barrels, according to NNPC.
Efforts to enhance crude oil production in Nigeria have been ongoing, with a focus on curbing oil theft and pipeline vandalism.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and Chief of Defense Staff, Gen Christopher Musa, recently strategized to combat these challenges and boost oil production to drive economic growth.
Monthly declines in crude oil production have resulted in revenue losses, with Nigeria missing its production benchmark in the 2024 budget.
Despite setting a crude oil production benchmark of 1.78 million barrels per day for 2024, Nigeria’s oil output witnessed consecutive monthly declines, as reported by the Organisation of the Petroleum Exporting Countries.
The decrease in production has been attributed to theft and pipeline vandalism in the Niger Delta region, prompting measures to address the issue.
Enhancing security and protecting oil assets are crucial for economic stability, with a focus on reducing theft and vandalism for sustainable economic growth.
The military’s support in safeguarding Nigeria’s oil resources is essential for ensuring economic prosperity.
Collaborative efforts between government and stakeholders are imperative to overcome challenges in the sector and optimize the benefits of the nation’s oil and gas industry.