The operators of Oil Mining License 30 (OML 30) oil block have announced the full resumption of operations after 12 years of inactivity and halted production.
Ado Oseragbaje, CEO of Heritage Energy, confirmed the development in a statement on Friday, noting that the company has launched a three-rig campaign in the oilfield to boost expansion and enhance production capabilities.
OML 30, a significant asset in Nigeria’s oil production portfolio, is operated under a joint venture between the Nigerian National Petroleum Corporation (NNPC) and Heritage Energy.
According to Oseragbaje, the revival efforts include the development of under-utilized fields and reservoirs through the drilling of infill oil wells, gas development wells to align with Nigeria’s gas master plan.
The CEO also projected that these initiatives would result in a remarkable 150% surge in oil production, marking a new chapter for the previously moribund asset.
“After a hiatus of 12 years, drilling and workover operations are back in full swing at OML30, marking a significant milestone in the asset’s growth journey. Heritage Energy, the operator of the OML 30 joint venture, has kickstarted a three-rig campaign to drive expansion and enhance production capabilities.
“The focus of this campaign is on reviving under-developed fields and reservoirs through the drilling of infill oil wells, gas development wells to support Nigeria’s gas master plan, and exploration wells to maximize the asset’s potential.
“Anticipated results include a remarkable 150% surge in oil production, underscoring the impact of these initiatives on overall output,” Oseragbaje said.
Why OML 30 shutdown
OML 30 was initially shut down due to a crisis involving the oil block’s operator, Heritage Energy Operational Services Limited (HEOSL).
According to reports, tensions arose when Heritage Energy was accused of neglecting its obligations to the host communities. This led to widespread dissatisfaction and protests across OML 30 communities.
In 2019, Chief Emuobosa Ohare, Chairman of the President-Generals’ Forum of OML 30 communities, stated during a protest that the communities had been advocating for their rights for several years without a response from the company.
Key demands included the payment of unpaid scholarship funds from 2014 to 2016, the employment of graduates and other local labor, and a thorough staff audit.
Ohare also called for the reinstatement of indigenous staff who were reportedly dismissed without due process and demanded an end to arbitrary layoffs of community members employed by HEOSL.
What you should know
OML30 is situated approximately 35 kilometers east of Warri in the Niger Delta. With estimated oil reserves of one billion barrels, it is Nigeria’s second-largest onshore oil and gas asset.
The asset comprises 11 fields, 9 flow stations, the Trans Forcados Pipeline (TFP), the Ughelli Pump Station (UPS), and 110 host communities; it occupies an area of roughly 1,095 square kilometers.