(Ecofin Agency) - Royal Dutch Shell has on Wednesday announced the commencement of gas production from the second phase of the Gbaran-Ubie project in Bayelsa State, Nigeria. The Phase 2 follows the success of Phase 1 of the Gbaran-Ubie integrated oil and gas development commissioned in June 2010.

According to Shell, the project would reach peak production of around 175,000 barrels of oil equivalent per day in 2019. “Today’s announcement is a positive step for Shell's global gas portfolio. It is good news for Nigeria as gas from Gbaran-Ubie phase 2 will strengthen supply to the domestic market and maintain supply to the export market,” Andy Brown (photo), Shell’s Upstream Director, said.

Located within OML 28, an onshore block located in the central Niger Delta, Gbaran-Ubie is one of the largest oil and gas projects in Nigeria with facilities including five oil and gas fields on a 650-square kilometre area.

Shell Petroleum Development Company (SPDC) is the operator of a joint venture between Nigerian National Petroleum Corporation (NNPC) with 55%, SPDC (30%), Total E&P Nigeria Ltd (10%) and ENI subsidiary Nigerian Agip Oil Company Limited (5%).

Anita Fatunji