The Chief Executive Officer of the company, Layiwola Fatona, said the bill is for new wells, new flow station and a mini gas plant that will ensure the company flares no gas at first oil.
He however said a key challenge for the field is flow assurance; the oil is heavy and will need gas lift solution.
He said: “Unlike Ogbele, we cannot do ‘poor boy’ type or one step at a time Field Development Plan for Omerelu.”
According to him, Ogbele is the company’s first field, which has been in production since 2005, with current output at 3,500 BOPD.
He explained that the money for the Omerelu project will be taken from the first tranche of the $450 million equity capital that NDPR is in the process of raising. That first tranche is $250 million.
At its last Annual General Meeting, in mid-September 2014, the NDPR board received shareholders’ approval “to raise additional capital of up to $450,000,000 (Four hundred and fifty million dollars), whether locally or internationally, through any capital raising method that the directors may deem fit, including a public offer or special placing of shares, subject to the approval of the appropriate regulatory authorities.”
The company executed a farm in agreement with American major Chevron earlier this year after a drawn out process which began when Chevron farmed out Ogbele field to NDPR in 2000.
At the time, both companies agreed that NDPR would have the right of first refusal to farm in to Omerelu.
