Oil and gas super major ExxonMobil Corporation has announced its Erha North Phase 2, offshore Nigeria, has come on stream starting oil production.
ExxonMobile told press the production startup of Erha North came ahead of schedule by as much as five months, and US$400 million under budget.
Erha North Phase 2 is a subsea development sitting in 1005 meters (3300ft) of water, around 60 miles (96.5km) offshore Nigeria.
The deepwater development consists of seven oil wells, and operates via subsea tieback to the Erha North Floating Production Storage Offloading (FPSO) vessel, that itself has been in operation since 2006.
ExxonMobile have said the development should net the firm reserves of 165 million barrels of oil, with its peak production expected to be around 65,000 barrels of oil per day.
President, ExxonMobil Development Company, Neil W. Duffin, said: “Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise,”s
“We are able to create additional shareholder value by optimising existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”
Duffin said that over US$2 billion of the projects total investment had gone to local Nigerian companies, adding that the strong performance of local contractors supported the firm in bringing the project on stream ahead of schedule.