Making JV Gas Available to the Domestic Market with Minimum Additional Oil Recovery AOR Impact

Abstract

Abstract In continuation of her drive to energize the Nigerian economy, the Federal Government of Nigeria (FGN) recently introduced policy reforms in the oil and gas sector to ensure adequate gas supply to the power, gas-based industries and commercial sub-sectors of the domestic gas market. Mobil Producing Nigeria (MPN) and her Joint Venture (JV) partner, the Nigeria National Petroleum Corporation (NNPC), through the National Petroleum Investment Management Services (NAPIMS) are progressing the 20", 400 million scf/d, 53km Oso – QIT Gas Pipeline Project (OQPP), a key enabler for making the JV's gas available to the domestic market. The NNPC/MPN JV currently holds about 14 Tcf of gas resources, with the Associated Gas (AG) accounting for 74% while the Non Associated Gas (NAG) account for the balance. The AG are located in the JV's producing fields while the NAG are located in mostly undeveloped fields. The NNPC / MPN JV currently produces over 1 Bscf/d of gas from mostly the AG fields/reservoirs. Some 67% of this produced gas is utilized for gas injection for Additional Oil Recovery (AOR) in 7 fields. Making the JV's gas available to the domestic market will entail diverting some of the gas currently being re-injected for AOR to the domestic market. This paper describes the workflow undertaken to optimize oil recovery (in the gas injection reservoirs) within the boundaries of making some 100 – 400 million scf/d of the JV's gas available to the domestic market.