Firm to Use Marginal Field Gas For Power Generation

• Firm to Use Marginal Field Gas For Power Generation

Green Energy International Limited has said it will utilise gas produced from its Otakikpo Marginal Field in Oil Mining Lease 11, Rivers State, for power generation and domestic gas production.

According to GEIL, the marginal field, which is gradually moving towards production, will provide the required fuel for six megawatts generators that will supply uninterrupted electricity to indigenes of Ikuru town and adjoining communities of Ayama Ekede, Ugama Ekede, Asuk Ama and Asuk Oyet.

It stated that the project was expected to boost the economy of the fishing communities and was being carried out in the state together with GEIL’s technical partner, Lekoil.

The gas producer said the project would encourage the communities to establish an industrial park where companies could leverage the uninterrupted electricity in the area, adding that the total initial cost of the scheme was in excess of N2bn.

The Director of Sustainable Development at GEIL, Mr. Ayo Olojede, said the company had started processing application with the industry regulator for the installation of gas processing facility to extract the Liquefied Petroleum Gas and condensate from wet associated gas in the Otakikpo wells.

He noted that GEIL and its partner had designed a scheme with the communities that would involve local entrepreneurs to distribute the LPG within and outside the communities.

He explained that the Otakikpo marginal field was designed as a pilot scheme to demonstrate the applicability of the small-scale gas utilisation programme of the Federal Government.

Olojede said the programme would eliminate gas flaring and promote the utilisation of gas derived from the field to energise the economic potential of the oil producing communities.

He said it was hoped that the successful pilot phase of the project would lead more marginal fields to embrace the concept, as this would decrease gas flaring for small and medium-sized exploration and production companies.

The Technical Director, GEIL, Dr. Bunu Alibe, said the company had commenced a production test in order to meet its objective of producing the field.

According to him, the field, which has the capacity of adding about 10,000bpd to national production output within a short period of time, has its six-kilometre pipeline nearing completion.