Exxon Mobil starts production at Erha North Phase 2 project

IRVING, Texas -- Exxon Mobil announced Wednesday that its subsidiary, Esso Exploration and Production Nigeria Limited, has started oil ahead of schedule at the Erha North Phase 2 project offshore Nigeria. The Erha North Phase 2 project is a deepwater subsea development located 60 miles offshore Nigeria in 3,300 ft of water and four miles north of Erha field, which has been producing since 2006. The Erha North Phase 2 project includes seven wells from three drill centers tied back to the existing Erha North floating production, storage and offloading vessel, reducing additional infrastructure requirements. The project is estimated to develop an additional 165 MMbbl from the currently producing Erha North field. Peak from the expansion is currently estimated at 65,000 bopd and will increase total Erha North field production to approximately 90,000 bopd. Ramp up “Executing successful projects, such as Erha North Phase 2, ahead of schedule and under budget results from Exxon Mobil’s disciplined project management approach and expertise,” said Neil W. Duffin, president of Exxon Mobil Development Company. “We are able to create additional shareholder value by optimizing existing infrastructure, which reduces capital spending requirements and improves capital efficiency.” Duffin said the ahead-of-schedule startup was supported by strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment, facilities and offshore installation. Exxon Mobil expects to increase its global production volumes this year by 2% to 4.1 MMboed, driven by 7% liquids growth. The volume increase is supported by the ramp up of projects completed in 2014, and the expected startup of major developments in 2015. Erha North field was discovered in 2004 and initial commenced in 2006. Operator Esso Exploration and Production Nigeria Limited holds a 56.25% interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75% share.