ExxonMobil awards oil recovery project contracts for Nigeria East

By OGJ editors

HOUSTON, July 9 -- Exxon Mobil Corp. reported Wednesday that its subsidiary, Mobil Producing Nigeria (MPN), operator of the Nigeria National Petroleum Corp. (NNPC) joint venture, has awarded major contracts for additional oil recovery (AOR) initiatives in the East Area off Nigeria.

The AOR project includes gas gathering pipelines, gas compression, gas reinjection pipelines, and associated facilities on the site, which is 20 miles off Nigeria in 85-110 ft of water. Startup is scheduled for 2006.

ExxonMobil awarded engineering, procurement, and construction contracts valued at more than $800 million for the compression platforms, pipelines, and riser platforms. Nigerian contractors and suppliers will be assigned significant phases of the development, including fabrication of seven major structures, pipe coatings, and offshore construction.

The $1.7 billion natural gas reinjection project is expected to improve oil recovery from multiple reservoirs in the NNPC/MPN JV area, increasing production by 110,000 b/d and ultimate recovery in the JV area by more than 500 million bbl. Current production capacity is 750,000 b/d of petroleum liquids.

"The project will also eliminate gas flaring in our offshore operations 2 years ahead of Nigeria's national objective to eliminate flaring by 2008," said Rex Tillerson, senior vice-president, Exxon Mobil Corp.

MPN holds a 40% interest in the NNPC/MPN JV. The Federal Government of Nigeria holds 60% interest through the NNPC.

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