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ExxonMobil Starts up Nigeria Erha Development

Source: www.gulfoilandgas.com 4/28/2006, Location: Africa

Exxon Mobil Corporation announced that its affiliate, Esso Exploration and Production Nigeria Limited (EEPNL), has started production from the world-class Erha deepwater development located approximately 60 miles (97 kilometers) offshore Nigeria in 3,900 feet (1,200 meters) of water.

The development includes Erha and Erha North, a satellite development due to come onstream in the third quarter of this year. This is EEPNL's first operated production from Nigeria's deepwater Block 209. Erha production is expected to ramp up to 150,000 barrels a day by the third quarter, and Erha North will contribute another 40,000 daily barrels by year-end for a total production output of 190,000 barrels a day. Erha North will be on production within 30 months of discovery, setting a Nigeria deepwater record. Associated natural gas production from the projects will be about 300 million cubic feet a day, which will be reinjected for reservoir management.

The Erha and Erha North developments consist of 32 subsea wells tied to a Floating Production Storage and Offloading (FPSO) vessel. A single-point mooring buoy, one of the world's largest, will be used for crude carrier docking and product transfer. The facilities were constructed within budget and total cost for the two developments, including facilities and drilling, is approximately $3.5 billion.

Stuart McGill, senior vice president of Exxon Mobil Corporation, said, "Erha and Erha North are another demonstration of ExxonMobil's global project execution capability and deepwater technology expertise. Along with our other successful West Africa deepwater developments, Erha and Erha North are helping ExxonMobil meet growing global demand for oil. In addition, these major projects demonstrate our continued commitment to support Nigeria in meeting national goals. Erha and Erha North, along with the recent startup of the Yoho full-field facilities, underscore our commitment to increasing local business development and capacity."

The Erha developments included contract awards to several Nigerian companies for in-country fabrication services, logistics support as well as training, development and employment of Nigerians. Activities involved fabrication of the mooring buoy, subsea manifolds, drilling unit pilings, and modules for the FPSO such as the flare tower, pipe racks and riser protection frames.

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