Mart Resources, Inc., an international oil and gas company focused on production and development opportunities in the highly prolific Niger Delta region of Nigeria, said production from its Umusadege field was impacted by pipeline maintenance in December.
The company and its co-venturers, Midwestern Oil and Gas Company (operator of the Umusadege field) and SunTrust Oil Company, said the field production in the month averaged 5,049 barrels per day (bpd), with a downtime of about 18 days due mainly to maintenance and repairs on the export pipeline performed by the pipeline operator, Nigerian Agip Oil Company Limited (NAOC).
The average field production based on producing days was 12,185 bpd in December 2013, the company said in a release published on the company’s website on Monday.
Total net crude oil deliveries into the export pipeline from the Umusadege field for December 2013 were approximately 145,800 barrels before pipeline losses, according to the statement.
The company also announced that negotiations have concluded with the local communities for right of way for the last five kilometres of the first section of the Umugini pipeline, adding that the pipeline contractor re-mobilised and restarted construction operations in December 2013. It is expected that the pipeline construction will be completed in the first half of 2014.
It stated that pipeline and export facility losses reported by NAOC and allocated to Mart and its co-venturers for November 2013 were 80,563 barrels, or 28.1 percent of total crude oil deliveries into the export pipeline.
“Pipeline and export facility losses have averaged 25.6 percent for the first eleven months of 2013.
As previously announced, NAOC has been unable or unwilling to provide the marginal field companies that produce through the Umusadege export facility (cluster group) with an explanation for the basis for the pipeline and export facility losses or for the reasons for the fluctuations in allocated pipeline losses,” the release said.
It added that the cluster group disputed the allocation of the losses and requested the formal involvement of the Department of Petroleum Resources (DPR). As a result of a meeting in November 2013 that included the DPR, NAOC and representatives from the cluster group, a committee including all involved and affected parties has been set up.
“Suspension of the allocation of pipeline and export facility losses to the cluster group has been imposed until the pipeline loss allocation issues are resolved, and it is expected that the suspension of allocation of losses in reports provided by NAOC will begin for December 2013.”
Mart was informed of maintenance being performed on its export pipeline, causing the pipeline operator to temporarily close the pipeline on December 6, 2013. As a consequence, all Umusadege field production shipped through the NAOC export pipeline was shut in from December 6, 2013 until December 24, 2013 while NAOC completed maintenance operations.
The shipment of oil produced from the Umusadege field through the NAOC pipeline resumed on December 24, 2013.
By: FEMI ASU
