The sustainability of Africa’s marginal oil field producers came under evaluation in London at the weekend, where an energy expert, Professor Anthony Adegbulugbe harped on the need to leverage on other unique opportunities in the oil and gas business beyond only upstream activity.
Adegbulugbe, who doubles as the Chairman of Green Energy International Limited, gave the hint in his presentation titled: “Financial sustainability and Efficiency of Marginal field operations”, at the just-concluded African Marginal and Independent Oil and Gas Producers Conference in London.
In a statement released on Saturday by the company’s Director of Legal and Corporate Affairs, Olusegun Ilori, Adegbulugbe was quoted as saying that the uncertainties in the crude oil business environment have imposed serious sustainability challenges on the small oil producers, pointing out that this can only be addressed through integrated energy development approach.
The conference themed: “Maximising Economics and Technology for Optimisation” organized by Energy and Corporate Africa brought together African marginal and independent field producers, investors, industry service providers, oil exploration experts, offtakers, researchers, banking and finance providers among others.
Adegbulugbe was further quoted as saying that sustainable development strategies must include among others: increasing base production, reduction in operational cost per barrel, diversification of revenue base, and linkage of upstream and downstream opportunities and the broader economy.
“Sustainability of Africas’ one asset marginal field producers may depend on leveraging on their unique opportunities and eventual transformation into integrated energy companies” he said.
Using his company, Green Energy, the operator of the Otakikpo marginal field in OML 11 as a case study, Adegbulugbe said the company’s strategy of linking Otakikpo’s upstream activities to the larger economy tremendously de risked the marginal field.
He said the company from the onset has been positioned as an integrated energy company having determined to use the gas produced from the field for LPG and Power generation.
In furtherance of this strategy, he said the company had already secured the licence to construct (LTC) from the Federal Government for the LPG plant being manufactured in China.
Also 6MW gas generators are on site for the first phase of the gas to power project to provide electricity for the adjoining host communities while the balance of the power will be wheeled to an Industrial Park being facilitated to attract industries in need of uninterrupted power.
Also part of the sustainability strategy is the development of a 10,000 bpd Otakikpo refinery and a diesel plant for which licence has been obtained with a conceptual design already done.
Adegbulugbe stated that the company was also investing in the development of an onshore terminal for its crude export and to serve other small crude producers in the Andoni area
He said the company currently producing 6000 bpd intends to increase its production base to 20,000 bopd with determination to drill more wells planned for 2019 after conclusion of the processing of newly acquired seismic data.
Thus, he said marginal oil producers holds significant promise for the robust participation of skilled African human resource in the oil and gas sector and called for more incentives from government to encourage sustainability of marginal fields.
