NNPC, Heirs Energies Gas Production Surge: Innovation or Just Catching Up?

NNPC and Heirs Energies are touting a significant increase in gas production from OML 17. News reports indicate a doubling of output, now peaking at 135 million standard cubic feet per day (MMscf/d). They credit this to a pioneering “rigless recompletion” of a gas well, the first of its kind in Nigeria, rather than drilling a new well.

The claim is that this intervention, costing only 15% of a new well, has boosted power generation, allowing TransAfam Power to nearly quadruple its output. Other power plants are also apparently seeing benefits. The promise is clear: more power, fewer blackouts, and support for the nation’s economy.

The industry likes to celebrate ‘firsts,’ and this ‘rigless recompletion’ definitely sounds impressive, and the Special Adviser to the President on Energy added her praise. Mrs. Olu Verheijen, states, “I congratulate the entire Heirs Energies team on this remarkable achievement, which is a testament to the strength of Nigerian engineering expertise and the value of persistent technical innovation.” Still, a healthy dose of skepticism is warranted.

Have they actually broken new ground? Or is this simply a case of applying well-established techniques to address a problem that should have been handled more effectively from the start? Sometimes “innovation” just means fixing past oversights.

It’s worth remembering that OML 17 has had its share of challenges. The well in question was reportedly shut in due to excessive water production. Now, while rigless recompletion is certainly a faster, cheaper alternative to drilling, it begs the question: why was the well producing so much water in the first place? Good reservoir management practices are crucial, and preventing issues upfront saves money and headaches later.

One has to wonder if this “innovation” arose from a need to cut costs rather than a genuine desire to push technological boundaries. Exploration and production budgets are always under scrutiny, especially in the current climate, so finding cheaper ways to maintain or boost output is always attractive.

That said, the increase in gas supply is undeniably good news for Nigeria. The energy sector desperately needs a boost, and any initiative that can provide more reliable power is a step in the right direction. Transcorp Plc’s TransAfam Power, quadrupling its output is no small accomplishment.

It’s interesting to see NNPC actively promoting this achievement through its joint venture. It highlights their commitment to increasing gas production, and supports the national gas-to-power agenda. However, it also serves as a good PR story, given some of the criticisms the NNPC has faced.

From an operational perspective, this development could point towards a broader shift in how Nigerian operators approach mature fields. Rigless interventions offer a more cost-effective way to extend the life of existing assets and unlock previously untapped reserves. If successful, we might see more companies adopting similar strategies.

Yet, sustainability is key. This particular project sounds promising. Now, NNPC and Heirs Energies need to consistently show positive financial gains. The NNPC/Heirs Energies OML 17 Joint Venture continues to advance gas-focused, innovation-driven developments, aiming to expand domestic gas supply, strengthen electricity generation, build local capacity, and support broader economic and industrial growth.

It is critical to look at the environmental impact. While the report doesn’t delve into specifics, using a rigless recompletion suggests a reduced environmental footprint compared to drilling a new well. Given the increasing scrutiny on emissions, this is something to consider.

It is important to consider how Nigeria’s local talent benefits. Igiehon, Heirs Energies CEO, spoke of the ingenuity, thoroughness, and resilience of their 100% Nigerian workforce made this possible. It is interesting to see Heirs Energies emphasizing the local expertise that made this project a success. Building local capacity is crucial for the long-term sustainability of the Nigerian energy sector. The benefits of upskilling are far greater than the production metrics.

Looking ahead, it will be important to track the long-term performance of this well. Has the water production been truly resolved, or is this a temporary fix? Will the increased gas output be sustained over time? These are the questions that will ultimately determine the success of this “pioneering intervention.” It remains to be seen if this innovative approach will truly revolutionize gas production in Nigeria. It might just be a smart, cost-effective solution to a specific problem. Only time will tell if this success story has staying power.

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