SPDC Divested OML26 (Onshore Nigeria)

Facility Technical Safety Audit for OML 26


Nigerian Petroleum Development Company(NPDC) and its joint venture partner First Hydrocarbon Nigeria(FHN) took over operations in OML 26 and decided to conduct a Facility Technical Safety Audit to ascertain that the facility and processes are designed, constructed, maintained, monitored, and operated in full compliance with applicable industry codes, regulations, and accepted practices and also prove the fact that the previous operator had adequate health, safety, security and environmental management systems in place.

OML 26 is an Oil Mining License located onshore in the Western Niger Delta, about 60-65 km East of Warri. The license was first awarded to The Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture in 1959. The non-NNPC JV Partners have recently divested their 45% interest in this asset to FHN, whilst NNPC’s interest was transferred to its operating company, NPDC, which also assumed Operatorship in 2011.

Current field production is estimated at 8,000 bopd of oil, at a total liquid rate of 20,000 blpd.

Our Approach

NPDC/FHN appointed Kogzytech Associates Ltd (KAL) to undertake an in-house Facility Technical Safety Audit for a post transition evaluation of the inherited facilities and processes. We took a collaborative approach to the project drawing on the expertise of KAL consultants working closely with a team of in-house engineers.

Using standardized techniques for field inspection visits supported by a composite checklist covering different sections of the facility, we came up with technical information that revealed the present state of the equipment, processes/procedures and resources needed to ensure production sustainability.

Alongside interactions and interviews at different levels of the activities in the field, a close assessment of the present state of well locations, physical structures in the main Ogini field and adjoining Isoko field was conducted. The observations and findings were discussed with principal operations specialists and asset management team for further improvement.

Benefits and Value

The Audit not only highlighted areas for further improvement but also showed that OML 26 has the potential to deliver the expected future production based on recent findings as it relates to planned future field development program proposed for the field as long as the necessary operational activities are effectively managed.