Nigerian National Petroleum Corporation and Agip will, in second quarter of next year, commence crude oil production from Nigeria's first deep water offshore oil field holding over 700 million barrels reserve. Located offshore off Ondo State, the field is being operated under a production sharing contract between the NNPC and Nigerian Agip Oil Company. The Abo field will produce over 1,500 barrels per day when it comes on stream next year with peak output of about 20,000 bpd, when fully operational.
Speaking on the World Environment Day at Akure, the Ondo State capital, Commissioner for Environment and Mineral Resources, Chief Sola Ebiseni, said that the well will produce 1,500 bpd when it comes on stream in the second quarter of 2003. According to him, although the revenue yield of the field to the state would be determined by the cost of crude in the international market, the state will nonetheless benefit from the output of the field when it becomes operational.