Lekoil has taken over a 40 per cent economic interest from Green Energy International Limited (GEIL), approved by Nigerian government, in Otakikpo Marginal Field after a farm-in and joint operating agreement that was signed last year
Otakikpo is situated in a coastal swamp location in OML 11, adjacent to the shoreline in the southeastern part of the Niger Delta.
It is held by the Shell Petroleum Development Company joint venture, which includes the Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited.
The Otakikpo Marginal Field was awarded to Green Energy International Limited by the department of Petroleum Resources in 2011. The award also included a commitment to develop a small-scale gas utilisation project within 30 months of commencement of production.
Lekoil CEO Lekan Akinyanmi said, “Having signed the farm-in agreement with GEIL last year, we welcome the progress that has been made to date and are delighted to have received ministerial consent ahead of first oil which is scheduled to begin in the coming weeks. Otakikpo is an asset with tremendous potential and I am delighted that Lekoil has been able to demonstrate its ability as a strong technical and financial partner.”
Lukoil paid Otakikpo a signature bonus of US$7mn to GEIL in May 2014 and a production bonus of US$4mn would be payable on meeting production milestones as required.
According to Lekoil, operations are at an advanced stage to ensure that Otakikpo attains first oil around mid-year 2015.