Companies

ADDAX  produces 425 million  barrels of crude oil in 19 years

by Olusola  Bello

December 11, 2017 | 1:35 am
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Addax Petroleum Development (Nigeria) Limited has produced over 425 million barrels of crude oil over the  19 years when it took over operatorship of Oil prospecting Licenses (OPLs) 98/118 and OPLs90/225 previously operated by Ashland Nigeria  Oil Company  who operated the blocks from 1973-1998, a period of  25 years.

According to a statement from the company and signed by Dorothy Ateke, General Manager, External & Government Affairs, it  noted that Addax Petroleum as contractor to and on behalf of Addax/NNPC Production Sharing Contract (PSC), achieved this feat through sustained investment in reserves and production growth activities, application of technology, strong NNPC/DPR partnership and strong partnership with host communities

The company leveraging on its world class technical expertise and application of technology,  brought various fields  onstream and embarked  on exploration and appraisal campaign in its adjacent concession areas resulting in commercial oil discoveries in Ofrima  and Udele fields, a project pivotal to Addax growth plans in the country.

In addition,  it stated that Addax Petroleum has a strong track record of developing under-exploited hydrocarbon resources and has through business drivers hinged on Health, Safety, Security and Environment (HSSE), human capital development, operations excellence and capital efficiency achieved this feat.

Still on its production activities, Addax recently kicked off its sustenance campaign via current drilling activities in the Njaba field in OML 124 licence area, premised on execution of low cost, capital efficient production optimization principles and is expected to increase increase from that area. . “The first oil producer in this drilling campaign was recently drilled and completed ahead of schedule and at significantly lower cost than budget. Preliminary well test results have also exceeded projected average oil production potential.”

Since the 2009 SINOPEC takeover, Addax Petroleum NNPC PSC  has invested over $5 billion and generated $6 billion for the Nigerian government , investments that has over the years resulted in job creation for residents of its operating host communities, and funding critical community projects in the areas of agriculture, health and education.

The company has also pioneered institution of a micro credit scheme , where over 480 women have been empowered to develop their small scale businesses, through a revolving loan scheme initiated to empower small scale business women within its OML 124 host communities.

In addition, its Technical Skill Acquisition Programme (TSAP) has enabled community youths within its host communities in Imo, AkwaIbom and Rivers States to be trained at the Federal Technical College, Omoku, in Rivers State, on selected vocations. After each  trainingsession, Addax Petroleum donates tools and equipment to assist them set-up small scale businesses in their chosen vocation. Thus far,  significant amounts have been expended on this scheme.” This is besides, the  annual award of  tertiary and post primary education scholarships and uplifting of educational infrastructure within its host communities”.

Significantly, Nigerian Content Development remains one of Addax Petroleum/NNPC PSCs critical business drivers as the company ensures total compliance  to the requirements of the Nigerian Content Act but also ensures deliberate utilization and promotion of local industry goods and services  to support its exploration and production activities and  has achieved these initiative through the tremendous support of the Nigerian Content Development and Monitoring Board (NCDMB)  and its Executive Secretary.

This venture has been at the forefront of building local capacity, supporting and developing local contractors and making huge investments in training and development  of Nigerian, It currently has 255 full time Nigerian in its direct employment  as well as another 380 Nigerians contractor staff.

The Addax/NNPC PSC agreement has a continuous  commitment to Research and development with partnerships established with the University of Benin and University of Port Harcourt  to host both its academia and students through structured R &D intervention programmes.

According to the company, “Its future in Nigeria remains very bright with a planned investment outlay of $3-5 billion. Indeed, growth and profit enhancement opportunities within its existing licence areas and further onshore and onshore drilling and development  activities are planned for next year and beyond.”

Addax Petroleum has since 2009 been a wholly owned affiliate of the Chinese entity, Chinese Petroleum Company (SINOPEC), bringing this to bear on positive Sino-Nigeria relationship.

 

Olusola  Bello

 


by Olusola  Bello

December 11, 2017 | 1:35 am
  |     |     |   Start Conversation

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