Nigeria's Ikike oil field starts production

Nigeria has started crude production from the shallow-water Ikike field, providing a much-needed boost for a country plagued by chronic operational problems in its upstream oil and gas sector.

TotalEnergies -which operates the field with a 40pc stake alongside state-owned NNPC with 60pc - said it expects Ikike to deliver 50,000 b/d of oil equivalent (boe/d) by the end of the year. The field is tied back to the Amenam offshore facilities through a 14km pipeline.

"By tapping discoveries close to existing facilities, this project fits the company's strategy of focusing on low-cost and low-emission oil projects," said Henri-Max Ndong-Nzue, senior vice-president of TotalEnergies' upstream operations in Africa.

The start of production from Ikike will help Nigeria lift its flagging crude output, which slumped to a 17-month low of 1.26mn b/d in June, 510,000 b/d below its Opec+ target for the month, according to Argus estimates.

Oil theft has disrupted flows to Nigerian terminals this year. Last month, a drop in shipments of the key Qua Iboe and Forcados streams exacerbated ongoing disruption to Bonny Light exports, which have been under force majeure since mid-March.

TotalEnergies said earlier this month that it expects the disruption in Nigeria, combined with port blockades in Libya, to drive a 100,000 boe/d cut in its second-quarter upstream production. The company produced 240,000 boe/d in Nigeria last year.

By James Keates