The Ikike field in Nigeria, which will produce a maximum of 50,000 barrels of oil equivalent per day by the end of 2022, has begun production, according to OML 99 operator TotalEnergies.
The company claims that the field output will give Nigeria, which has experienced operational issues in its upstream oil and gas sector, the much-needed boost.
According to information provided by the Organization of the Petroleum Exporting Countries (OPEC), Nigeria’s crude oil output averaged 1.238 million barrels per day (bpd) in June 2022. (OPEC).
By the end of the year, TotalEnergies, which runs the field with a 40% share and the Nigerian National Petroleum Company, Limited (NNPC), which holds a 60% stake, anticipates Ikike to produce 50,000 barrels of oil equivalent per day (boe/d). A 14 km pipeline connects the field to the Amenam offshore facilities.
According to Henri-Max Ndong-Nzue, senior vice-president of TotalEnergies’ upstream activities in Africa, “this project matches the company’s strategy of focusing on low-cost and low-emission oil projects by exploiting finds adjacent to existing facilities.”
The beginning of Ikike production will aid Nigeria in increasing its sagging crude output, which in June fell to a 17-month low of 1.26 million barrels per day, or 510,000 barrels per day below its OPEC target for the month, according to estimates from Argus.
This year, oil flows to Nigerian terminals have been hampered by theft. The major Qua Iboe and Forcados streams saw a decline in shipments last month, which worsened the force majeure that has been preventing Bonny Light exports since mid-March.
Concerns regarding the nation’s production capacity were raised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which cited instances of operators purposefully shutting down oil wells and pipelines in an effort to combat theft.
The NUPRC estimates that in 2022, the country will see an average daily loss of 108,000 barrels of crude oil.