Featured Company News - NNPC Signs Tripartite Agreement with First E&P and Schlumberger for Development of Nigerian Oil Fields
LONDON, UK / ACCESSWIRE / July 6, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Schlumberger Ltd (NYSE: SLB), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=SLB. The Nigerian National Petroleum Corporation (NNPC) announced on June 29, 2017, that it has signed a tripartite agreement with First Exploration and Petroleum Development Company (First E&P) and Schlumberger to develop the Anyala and Madu fields in Nigeria. The project will be conducted under the Oil Mining Licence (OML) 83 and 85. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Details of the Project
As per the agreement, Schlumberger will provide any services in kind as well as capital as required for the development of the project till the first oil is retrieved. The three parties to the agreement will form a joint project team for this project. The joint project team will utilize Schlumberger's technical expertise along with local knowledge of the other partners to move ahead on this project. Schlumberger's technical expertise will also help the partners in lowering the development costs and maximize value for the project partners. Schlumberger will not only provide funding for the development of the project; the Company will also provide other Oilfield Services for the project for a limited period.
The project will initially use an FPSO (Floating Production Storage and Offloading) platform for oil production. The project envisions an FPSO designed to handle 50,000 bbls of oil per day and 120 MMscf of gas per day. The final investment decision (FID) on the project is expected to be taken in December 2017 and the first oil production from this project is expected to start in FY19. Schlumberger has agreed to invest over $700 million in this project over a period of several years. The agreement has provision for guaranteed project returns as well as a payment assurance from a bank.
About the Anyala and Madu fields and OML 83 and 85
The Anyala and Madu fields are located in shallow waters 40 km offshore in the southern Niger Delta. These oil fields are estimated to have reserves of 193 million barrels of crude and 800 billion standard cubic feet of gas. These oil fields are also known as OML 83 and 85. NNPC owns the majority stake in the oil fields with 60% interest and First E&P owns the remaining 40% interest.
The agreement is part of Nigerian state's plan to attract investment to increase its crude oil reserves to 40 billion barrels by 2020, up from the current proven reserves of 37.2 billion barrels. Nigeria has proven gas reserves of over 197 Trillion Cubic feet of gas. The gas produced from these oil fields will be used by the Nigerian state to support its existing power plants as well as the planned power projects.
About Schlumberger
Schlumberger is the world's largest oilfield services Company. It provides the oil and gas industry's most comprehensive range of products and services, from exploration through production and integrated pore-to-pipeline solutions for hydrocarbon recovery that optimize reservoir performance. Schlumberger employs more than 100,000 people and has operations spread across more than 85 countries.
In FY16, the Company's revenues from continuing operations were over $27.81 billion.
Last Close Stock Review
On Wednesday, July 05, 2017, Schlumberger's stock closed the trading session at $65.74, slipping 1.84% from its previous closing price of $66.97. A total volume of 8.87 million shares were exchanged during the session, which was above the 3-month average volume of 7.60 million shares. Shares of the Company have a dividend yield of 3.04% and currently have a market cap of $91.58 billion.
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