OML 42: Nestoil invests $28m in rigs to boost production
By Obas Esiedesa, Abuja
Nestoil Group has invested about $28 million in two drilling rigs as part of efforts to boost crude oil production and strengthen indigenous drilling capacity in Nigeria.
The Group disclosed this in a statement on Monday, saying its strategic business unit, Scorpio Drilling International, recently deployed the Pathfinder 500 rig to Oil Mining Lease (OML) 42, where it completed workover operations on two producing wells without any Health, Safety and Environment (HSE) incidents.
According to the company, the operation contributed to increased oil production from the asset and marked the first productive deployment of the Pathfinder 500 since its acquisition about eight years ago.
Chairman of Nestoil/Neconde Group, Dr Ernest Azudialu Obiejesi, described the successful mobilisation and deployment of the rig as a major milestone for the Group and Nigeria’s indigenous drilling industry.
Obiejesi said the decision to invest in the two rigs was driven by the need to reduce dependence on hired drilling equipment, which he said had become increasingly difficult and costly to secure in Nigeria’s operating environment.
He explained that, as an asset owner in OML 42, the Group required reliable in-house drilling capacity to carry out workovers, revive mature wells and ultimately drill new wells as the field develops.
According to him, the successful deployment of the Pathfinder 500 had positioned the Group to commence its planned in-field drilling programme in OML 42.
Obiejesi also disclosed that the refurbishment, crewing and deployment of the rig were undertaken entirely by Nigerian personnel, with the current crew comprising 100 per cent Nigerians.
He attributed the availability of skilled Nigerian drilling personnel to decades of capacity development by international oil companies operating in the country.
The Nestoil chairman said the development demonstrated that Nigeria had built sufficient technical expertise to support complex drilling operations, noting that Nigerian personnel were now providing services in other oil-producing countries.
He commended the teams at Scorpio Drilling International and others involved in the rehabilitation and operation of the Pathfinder 500 for successfully returning the rig to productive service.
Obiejesi said the acquisition and deployment of the two rigs had significance beyond the Nestoil Group, noting that Scorpio Drilling International’s ownership of two operating rigs represented a contribution to the development of indigenous drilling capacity in Nigeria.
OML 42 is a legacy Shell-operated asset in which Nestoil Group, through Neconde Energy, holds interests.
The Group said it would continue to invest in indigenous drilling, workover and well-services infrastructure to sustain and increase oil production from the asset.
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