SPDC JV’s Gbaran-Ubie Phase 2 comes on stream
Aug 23, 2017
The Shell Petroleum Development Company of Nigeria Ltd (SPDC) Joint Venture has commenced production at Gbaran-Ubie Phase 2, a key project in the Niger Delta that will help to boost gas supply to the domestic market and maintain supply to the export market.
Gbaran-Ubie Phase 2 follows the success of the first phase of the Gbaran-Ubie integrated oil and gas development, which was commissioned in June 2010. Peak production at Gbaran-Ubie Phase 2 is expected in 2019 with approximately 175,000 barrels of oil equivalent (kboe) per day. A breakdown of this peak period production is approximately 864 million standard cubic feet of gas per day (MMscf/d) and 26,000 barrels of condensate per day.
“The latest development at Gbaran-Ubie is a powerful statement on the continuing commitment of SPDC and our Joint Venture partners to harness Nigeria’s oil and gas resources for the benefit of the country and stakeholders,” said Osagie Okunbor, SPDC Managing Director and Country Chair, Shell Companies in Nigeria. “The project was delivered safely through an integrated team with a significant engagement and empowerment of community service providers and Nigerian companies.”
Eighteen wells have been drilled and a new pipeline constructed between Kolo Creek and Soku, which connects the existing Gbaran-Ubie Central Processing Facility (CPF) to the Soku Non-Associated Gas (NAG) plant. First gas flowed from the wells in March 2016 with the facilities coming on stream in July 2017.
Peter Costello, VP Nigeria and Gabon said: “This is exciting news for Nigeria as it signals Shell’s continued strategy of deploying investment and expertise in our areas of strength. Our aim is to continue to explore areas of partnership in Nigeria where the right conditions exist and where we can add best value.”
Gbaran-Ubie Phase 2 will help to process the condensate from Kolo Creek, Gbaran, Koroama and Epu fields, thereby assisting in reducing the volume of flaring from SPDC operations. The project has contributed to economic development in the Niger Delta and assisted the local community and Nigerian companies.
During construction, members of the community and local sub-contractors provided goods and services in line with the provisions of a Global Memorandum of Understanding (GMoU). Training was also provided to the community in pipeline maintenance, scaffolding, welding and piping fabrication.
SPDC is the operator of a joint venture (the SPDC JV) involving the Nigerian National Petroleum Corporation (NNPC,) SPDC, Total E&P Nigeria Ltd and ENI subsidiary Nigerian Agip Oil Company Limited.
Shell Spokesperson, Nigeria
Mobile: +234 807 032 8045
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, August 23, 2017. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.
We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.