The Amenam-Kpono development is one of the largest shallow offshore projects ever undertaken in West Africa. Oil has been produced with zero flaring of associated gas since 2003, five years ahead of the deadline set by Nigerian legislation, which bans this practice from 2008. Amenam-Kpono is an environmental benchmark.

Oil and Gas Objectives

From the outset, the Amenam-Kpono Oil and Gas Export Project (AKOGEP) comprised two phases. The first was completed when the unitized Amenam-Kpono came on stream on July 13, 2003 in line with our commitments. A year later, peak production of 125,000 barrels of oil per day was reached. Phase 2, dedicated to developing the associated gas from the fields, will come on stream in early 2007, with 10 million cubic meters of gas exported to the Bonny liquefaction plant, in which we have a 15% interest.

The unitized Amenam-Kpono development is located 30 kilometers offshore southern Nigeria, in a water depth of 40 meters. It is operated by our subsidiary Elf Petroleum Nigeria Limited (EPNL), in partnership with ExxonMobil and state-owned Nigerian National Petroleum Corporation (NNPC). Our production in Nigeria will be doubled upon project completion.

An Environmental Benchmark

Through optimized recovery of crude oil and careful management of greenhouse gas emissions, Amenam-Kpono is an environmental benchmark.

During Phase 1 of the development, from 2003 to 2007, all the associated gas is being reinjected into the reservoirs to optimize the oil recovery rate. In Phase 2, beginning in early 2007, two-thirds of the gas will supply the liquefaction trains at the Bonny plant. To replace the gas no longer available for reinjection, 300,000 barrels of water per day will be injected.

The development plan, with zero flaring under normal operating conditions, means that we are complying with the Nigerian government’s decision to ban this practice five years ahead of the 2008 deadline. And by setting standards that are tougher than existing regulations, we are engaging our responsibility as an operator in Nigeria for the long term. Amenam-Kpono is helping to substantially reduce greenhouse gas emissions, since development of the gas avoids annual emissions estimated at 15 million metric tons of carbon dioxide equivalent.

At the same time, in line with our commitments, measures have been taken to reduce the project’s environmental footprint, including recycling of waste from the accommodation platform in accordance with stringent standards, treatment of drilling discharges, and reduction of emissions from power turbines.

Priority on Safety Performance

Amenam-Kpono sets the standard not only for environmental stewardship, but also for safety. In close cooperation with our suppliers and contractors, our zero accident objective has been a strategic project priority. Constant management of safety produced an excellent performance, with fewer than one lost-time injury per million man-hours worked.

An Integrated Project Team
 
Following approval of the development plan in July 1998, a highly integrated project team began work. Close cooperation and intensive personal interaction fostered a sustainable, trust-based relationship with our Nigerian partners, in which skills and know-how transfer were priorities of this large-scale development.

Skills Transfer

A large number of skilled Nigerians participated in fieldwork, drilling, processes, engineering, construction and testing, acquiring invaluable experience that prepared them to quickly assume responsible positions.

In Phase 1, the 40 Nigerian operators who brought the field on stream received classroom and practical training at Lacq in France, using purpose-designed simulators, before going to Dubai to help bring the platform on line. In Phase 2, another 40 operators received training in Malaysia in the yard where the new process platform was built.

Nigerian companies were selected whenever possible during tenders, thereby contributing to the development of local industry and the economy. Major technical components were fabricated locally, including three wellhead platforms, the accommodation platform jacket, the walkways between platforms, and the oil export buoy for tankers.

Supporting Social Development

Lastly, to support local economic and social development and help to improve the standard of living of people near our facilities, we also work closely with non-governmental organizations (NGOs) to deploy development programs for local communities. In addition to building new infrastructure such as water supply systems and power grids, we help people to sustainably increase their income, in particular by optimizing fishing and farming practices.