Nigeria to drill seven wells, add 50,000bpd infrastructure at Otakikpo field
Development of seven oil well and crude oil processing infrastructure that would push up the nation’s oil production by about 50,000 barrel per day has commenced at the Otakikpo marginal field in Oil Mining Lease (OML) eleven, which is located at Ikuru town, Rivers state.
Coming on the heels of the Field Development Plan (FDP) and Environmental Impact Assessment (EIA) approval granted by the Department of Petroleum Resources (DPR) the development is under the second phase of the field, which is being operated by Green Energy International Limited, (GEIL).
The Company and its technical partner, LEKOIL Oil and Gas Investments may have taken advantage of the Niger Delta dry season window to start the land reclamation exercise for its onshore terminal, flow station, and well sites.
For the full year 2019, production from Otakikpo averaged 5,305 bopd gross with 2,122 bopd net to LOGL (full year 2018: 5,345 bopd gross with 2,138 bopd net to LOGL). For the first twenty (20) days of this year, production at Otakikpo has averaged 5,860 bopd gross with 2,344 bopd net to LOGL.
“Otakikpo continues to provide steady production and cashflow for LEKOIL. We are delighted with the collaborative progress being made by all parties towards the development and transformation project planned for Otakikpo, that is aimed at increasing production from the field. We remain fully focused to generate value on this asset for all shareholders,” Lekan Akinyanmi, LEKOIL’s CEO, commented.
With the construction of 1.3 million barrels capacity onshore terminal, GEIL’s Director of Corporate Affairs, Olusegun Ilori disclosed that critical long-lead items for well construction have also been identified and ordered to meet the project 2020 drilling campaign timelines.
“It is expected that the first piece of the development will, in the short-term, increase production to up to 12,000 bopd using ullage on existing infrastructure while the long-term will see Otakikpo production of up to 20,000 bopd and opportunities to aggregate production from other producers,” Ilori said in a statement.
The oil firm would also conclude installation of a 17 Kilometer export pipeline connecting the terminal to an offshore loading system.
The field development was sanctioned in July 2019 with the signing of a Memorandum of Understanding (MoU), with a consortium of international firms, valued at $350million. The Consortium is expected to form multidisciplinary project management teams from LEKOIL and GEIL.
Chief Executive Officer, GEIL, Prof. Anthony Adegbulugbe reiterated the significance of continued collaborative efforts between the JV Partners that would be instrumental in obtaining the required financing to increase production at the site.
“This marks a major step forward for us and our partner, LEKOIL to fully develop the Otakikpo field, we are happy to see our asset moving forward into full development stage and generate significant cashflow,” he said.
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