(Ecofin Agency) - The Nigerian National Petroleum Corporation (NNPC) says it has entered into a tripartite agreement with First Exploration and Petroleum Development Company and Schlumberger to develop the Anyala and Madu fields in OMLs 83 and 85. Under the agreement, international oil service company, Schlumberger would provide the $700 million investment needed to develop the fields.

Nigeria, Africa’s second largest oil producer, has been looking for investment to boost its crude oil reserves to 40 billion barrels by 2020 and renovate its refineries to reduce its dependence on imports of refined petroleum products. According to the state oil company, the fields would add 193 million barrels of crude to the current proven reserves of 37.2 billion barrels and an additional 800 billion cubic feet of gas to the country’s proven gas reserves.

“In terms of daily production, the fields will yield 50 000 barrels of crude oil per day and 120-million standard cubic feet of gas per day by early 2019,” said Ndu Ughamadu, NNPC spokesperson.

OMLs 83 and 85 are located in shallow waters 40 km (25 miles) offshore Niger Delta. NNPC holds a 60% interest in the licences, while First Exploration and Petroleum Development Company, who is the operator of the joint venture, holds the remaining 40%.

Anita Fatunji