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Excel E and P says operations legal, wants Navy to vacate location

by Olusola Bello

December 1, 2014 | 2:45 pm
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Excel Exploration and Production  Company Limited, owners of Nigeria’s first marginal oil field has written to the Naval headquarters to intervene following an incursion on its facility by men of the  Nigerian Navy, on the claim that it does not have the legal standing  to  operate the Eremor field  on Oil Mining Lease (OML) 46.

Eremor oil field on OML 46 is located in Peretorugbene community in Bayelsa State.

Excel Explaration and Production also says it is willing to have its activities inspected to ascertain the genuiness of its operations.

The company further says it plans to seek the approval of  the Nigerian Navy to transport its crude oil to  designated Floating Production Storage and Off-loading(FPSO).

Also, it says it has already met  with the Navy signals department  to ask for its crude oil shuttle application requirements.

The management of the company, in  the letter  to the Chief of Naval Staff, said it is willing to co-operate with the Navy, if there are other approvals it needs to get, in order to have seamless operations. It further requests that its operational supervisor who  was arrested by the  Navy be released.

The Naval men on Wednesday 26 November, while on patrol, were said to have gone to the operational location of the company and placed its workers under arrest, thus halting the company’s operations.

This is inspite of the Navy being given all of the company’s necessary operational documents before it comenced operations, the letter said.

“They were shown all the approvals we have to operate the field and yet our men were still  not allowed  their  freedom, despite the fact  we have a JTF team  also overseeing our operations for  security reasons”, the letter  stated.

Narrating the various processes  the company went  through  to get  the approvals,  Abiodun Awosika, managing director of the company, stated that the field was awarded to the company as the successful bidder during the   2003 marginal   field bid  rounds.

While  approval was  given to it by the  Department of Petroleum Resources to re-enter and  complete the existing Eremor Well1 in April 29, 2008, the  approvals  were revalidated on July 27, 2011 and April 3rd respectively. The well was successfully re-entered in December 2013.

As a follow up to the above achievement, approval was sought from the Department of Petroleum Resources for the production test of Eremor Well, and extended well test after clean up.

The main objective of the testing after the well clean up, he  said, was to establish the following: fluid type, determine well productivity with quarzt gauges in the well;  to enable determination of critical reservoir properties and parameters  such as reservoir flow rates/capacity, reservoir pressure, reservoir heterogeneities, and reservoir limits and boundaries and minimum connected volume.

According to the letter  signed  by  Abiodun Awosika, the  company stopped flowing  the reservoir in July 2014 due to the tanks in the barge being full, to  the extent that the company could not  complete the extended well test as approved by the DPR, until  the company’s pending request from the DPR for crude oil oil export permit to evacuate and sell  the crude  from the   field to an offtaker had been granted.

He also  drew the attention of the chief of Naval Staff to the fact  that there  is  no limit to the amount of  oil  that should be produced from an extended  well test approval from the DPR, as approval is given on a three monthly basis   and can also be extended until the desired result has been achieved.

‘’Our  fixed  and stationary   Dera-1 storage and supporting tug boat, Running Charly, are duly  registered  with all the government agencies responsible for the registration of barges/vessels operating  in  the  country’s  waters, including DPR ,JTF and NIMASA”.  the  letter stated.

Olusola Bello


by Olusola Bello

December 1, 2014 | 2:45 pm
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