ExxonMobil Corporation has announced that its subsidiary, Esso Exploration and Production Nigeria Limited, has commenced oil production ahead of schedule at the Erha North Phase 2 project offshore Nigeria.

The Erha North Phase 2 project is a deepwater subsea development located 60 miles offshore Nigeria in 3,300 ft of water and four miles north of the Erha field, which has been on production since 2006. The Erha North Phase 2 project comprises of seven wells from three drill centers tied back to the existing Erha North floating production, storage and offloading vessel, reducing additional infrastructure requirements.

The project is estimated to develop an additional 165 million bbl from the currently producing Erha North field. Highest production from the expansion is presently estimated at 65,000 bo/d and will boost total Erha North field production to approximately 90,000bpd.

The Erha North field was discovered in 2004 and first production commenced in 2006. Its operator Esso Exploration and Production Nigeria Limited holds a 56.25 % interest in Erha North Phase 2, while Shell Nigeria Exploration and Production Company holds the remaining 43.75 % share.

“Executing successful projects such as Erha North Phase 2 ahead of schedule and under budget results from ExxonMobil’s disciplined project management approach and expertise,” Neil W. Duffin, president of ExxonMobil Development Company told Oilandgaspeople. “We are able to create additional shareholder value by optimizing existing infrastructure, which reduces capital spending requirements and improves capital efficiency.”

Duffin added that the ahead-of-schedule startup was backed by strong performance from Nigerian contractors, which accounted for more than $2 billion of project investment for goods and services, including subsea equipment, facilities and offshore installation.

ExxonMobil hopes to increase its global production volumes this year by 2 % to 4.1 million boe/d, driven by 7 % liquids growth. The volume increase is supported by the start up of projects completed in 2014 and the expected ramp up of major developments in 2015.