Yemisi Izuora
After achieving its first commercial production in 2017, Lekoil limited is focused on ramping up production at its Otakikpo oil field in the year ahead.
The company is currently producing some 8,000 barrels of oil per day at Otakikpo, but intends to raise production to 20,000 within two years.
Lekoil, which had US$5.9 million in the bank at the end of April, has plans to up production to 20,000 bopd by 2020 and is in the process of securing additional funding from industry sources to finance this second phase of development.
Away from Otakikpo, the company is planning a two well appraisal drilling programme at Ogo, also in Nigeria, with long-lead items such as wellheads already ordered.
It is still waiting on government to approve its acquisition of an additional 22.86 per cent stake in OPL 310 which will take its total interest in the asset to 40 per cent.
Once that is all sorted, Lekoil expects to finalise its funding plans for the drilling programme.
“Our priority for 2018 is to continue to grow production volumes and profitability at Otakikpo,” said chief executive Lekan Akinyanmi.
“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.”
He added: “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.”