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Oando Energy announces completition of Umugini pipleine

CALGARY, Alberta -- Oando Energy has announced the completion of the 45,000 bpd, 51 km Umugini pipeline. The pipeline will provide an alternative evacuation route for crude oil produced from the Ebendo field through the Trans Forcados export pipeline.

Following the successful drilling of Ebendo wells 5, 6, and 7 over the past 12 months, oil production capacity within OML 56 has grown to 7,140 boed gross for OER and Energia, the operator of the asset (3,052 boed net to OER).

However, export had been constrained at 3,093 boed (1,322 boed OER Share) via the Agip operated Kwale-Brass NAOC/JV infrastructure, in which OER currently has a 20% interest through the recent $1.5 billion acquisition of ConocoPhillips Nigerian Oil & Gas Business.

The completion and commencement of operations on the Umugini pipeline ensures that the Ebendo field can now produce at its full capacity.

Ebendo is located onshore, in the central Niger Delta approximately 100 km north-west of Port Harcourt and covers an area of 65 sq km. The license includes two fields, Ebendo (producing) and the Obodeti field (undeveloped).

Oando Energy Resources holds a 42.75% working interest on the field.

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