Gbaran-Ubie Phase 2 is the expansion of the integrated oil and gas development project which was commissioned nearly seven years ago. Following the development of the second phase, the peak production of Gbaran-Ubie is expected to move up to nearly 175,000 barrels of oil equivalent (boe) per day in 2019.
Shell upstream director Andy Brown said: “Today’s announcement is a positive step for Shell’s global gas portfolio.
“It is also good news for Nigeria as gas from Gbaran-Ubie Phase 2 will strengthen supply to the domestic market and maintain supply to the export market.”
As part of the phase 2 development of the Nigerian oil and gas project, eighteen wells were drilled while a new pipeline was laid out between Kolo Creek and Soku. The new pipeline links the existing Gbaran-Ubie central processing facility with the Soku non-associated gas plant.
While the first gas flowed from the wells in March 2016, the facilities came on stream almost a year later in July, stated Shell.
The Gbaran-Ugbidie upstream project is a joint venture owned by Nigerian National Petroleum (NNPC) which holds a stake of 55%, SPDC with a 30% stake, Total E&P Nigeria with a 10% stake and Nigerian Agip Oil Company, an ENI subsidiary, with 5%.
In 2009, NNPC had inked a funding agreement worth $1.69bn with Shell to cover its portion of investment in the Gbaran-Ugbidie oil and gas project in the Nigerian state of Bayelsa.
