In its financial result statement for 2016, Nigeria’s leading oil and gas producer Lekoil Limited has highlighted that the company will remain focused on the commercial production at Otakikpo asset, and advance towards developing its Ogo oil discovery
Samuel Adegboyega, chairman of Lekoil, said, “Our two priorities are to focus our resources on growing our low cost production from Otakikpo and to appraise and monetise the resources in the shallow water Ogo discovery.”
In the audit report, Lekoil has emphasised its targeted production of 10,000bpd from the current production of 5,500bpd at Otakikpo, which is scheduled to be completed before the end of 2017.
The company has added that the planned Phase 1 development at Otakikpo is set to be completed with the help of an offtake deal with Shell worth US$15mn.
Lekan Akinyanmi, CEO of Lekoil, noted, “The successful transition of Lekoil to a producing business generating operating cash flow will, in the medium term, allow us to fund Phase 2 of Otakikpo’s development which will lead to incremental production.”
The company has signed MoU with GE Oil & Gas, the American multinational conglomerate General Electric, for the development of the work at the Ogo oil discovery.
Lekoil’s financial report has described that the company completed the interpretation of 3D seismic data acquired for the whole OPL 310 area.
According to the statement, the company is planning for a new appraisal drilling programme at Ogo discovery, with an expected spud date on the Q1 2018.
Lekoil has also noted that the proposal of new appraisal drilling at Ogo is subjected to consensus with potential financing partners.
Akinyanmi further commented, “The minister of State, Petroleum Resources of Nigeria, granted consent to complete the transfer of the original 17.14% participating interest that LEKOIL acquired in OPL 310 in February 2013.”
“The remaining 22.86 per cent participating interest in OPL 310, as announced on 1 December 2015, remains conditional upon receiving ministerial consent,” he added.
