Lekoil Limited, an Africa-focused oil and gas exploration and production company with interests in Nigeria and Namibia, says it plans to scale up production volumes and productivity at its Otakikpo oilfield.
The firm, which currently produces 8,000 barrels of oil per day at Otakikpo field, said it planned to raise production to 20,000 barrels of oil per day by 2020.
According to a statement, the firm generated total revenue of $30.8m for the year ended December 31, 2017.
It said it was already in the process of securing extra funding from industry sources to finance a second phase of development to increase production.
According to the statement, the firm is planning a two-well appraisal drilling programme at Ogo field, with long lead time items such as wellheads already ordered.
It said it was awaiting the government’s approval of its acquisition of an additional 22.86 per cent stake in Oil Prospecting Licence 310 which will take its total interest in the asset to 40 per cent.
“Our priority for 2018 is to continue to grow production volumes and profitability at Otakikpo. Our planning for Phase 2 field development is already underway, targeting 20,000 bpd to be reached in 2020, subject to securing additional funding from industry sources,” the Chief Executive Officer, Lekoil, Lekan Akinyanmi, said.
Akinyanmi stated that part of the growth strategy included further appraisal and development work at the Ogo field.
He said, “In tandem, we will aim to progress the appraisal and development of our Ogo discovery in OPL 310. Once we receive the second ministerial consent, we plan to finalise funding plans for an appraisal drilling programme. The programme will comprise two wells which will include flow testing.
“Our aim is to secure enough information to enable the partners to take a Final Investment Decision in 2019 and then to proceed with development in partnership with GE Oil & Gas. Lekoil had earlier signed a Memorandum of Understanding with GE Oil & Gas for the full field development of Ogo field.”
The Chairman, Lekoil, Samuel Adegboyega, said, “To our great satisfaction, 2017 saw Lekoil’s first commercial production, and first crude oil sales. These are perhaps the most important milestones in the history of the company and represent the fruits of efforts that have been ongoing since Lekoil’s inception in 2010.”
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