Yenagoa — Nigerian independent producer Belemaoil Producing has resumed operations at its oil block Oil Mining Lease 55 after a three-year shutdown as a result of damage to the facility caused by theft, it said on Monday.
Belemaoil acquired OML 55, located about 40 km west of the Bonny oil export terminal in a swamp to shallow water area, from Chevron Corp (CVX.N), opens new tab in February 2015.
Operations at OML 55 were halted in 2021 due to rampant oil theft from its delivery line to the Bonny terminal, a Belemaoil spokesperson said in a statement.
According to the company, the block contains five oilfields that produce about 14,000 barrels per day and more than 70 million standard cubic feet of gas per day.
The arrival of the first floating oil storage vessel at OML 55 on Oct. 6 marked “a major milestone in the company’s efforts to restart production”, the spokesperson said.
Nigeria, Africa’s top oil producer, is trying to boost crude output which has fallen in recent years due to large-scale theft and sabotage that have forced oil majors to exit onshore drilling to focus on deepwater production.
*Tife Owolabi; Writing by Elisha Bala-Gbogbo; editing: Jan Harvey – Reuters
This article was originally posted at sweetcrudereports.com
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