(Bloomberg) -- Nigeria’s state-owned oil company said it signed a deal with Schlumberger Ltd. to provide $700 million for the development of two oil fields in the country’s crude-rich south.
The Anyala and Madu fields, estimated to have reserves of 193 million barrels of crude and 800 billion standard cubic feet of gas, will pump 50,000 barrels of oil and 120 million standard cubic feet of gas daily on completion of field development in early 2019, the Nigerian National Petroleum Corp., or NNPC, said in a statement published on its website.
“Under the agreement, Schlumberger will contribute the required services in kind and capital for the project development until first oil,” the Houston, Texas-based company said in a statement.
The offshore fields, also known as oil-mining leases 83 and 85, are owned 60 percent by NNPC and 40 percent by Lagos-based First Exploration & Production, which is also the operator of the joint venture. “Apart from providing funding for the development of the fields, Schlumberger would also provide other oil-field services on a limited exclusive basis,” NNPC said in the statement.
Nigeria, Africa’s biggest oil producer, is expanding oil exploration and production toward reaching a proven reserves target of 40 billion barrels by 2020. The country’s reserves are currently estimated at 37.2 billion barrels.