Lekoil Limited, an oil and gas exploration, development and production company with a focus on West Africa has begun preparations for the second phase of the 10,000 bpd capacity Otakikpo field which could double the output.
To this end, Lekoil’s joint venture vehicle Green Energy International has hired a Sinopec unit for the programme, which will capture just under 200 square kilometres of 3D data, spanning both the onshore and offshore areas.
Lekoil also plans to acquire a197 square kilometres of 3D seismic data at the Otakikpo Marginal Field in Oil Mining Lease (OML) 11, onshore and offshore in the south-eastern part of the Niger Delta, to update the existing 2D coverage. The new data will guide a fresh campaign of drilling.
It is expected that the seismic work will get underway in the first quarter of the year and it will effectively kick off the second phase of development for the Otakikpo field
“With significant milestones already achieved in 2017 as the Otakikpo technical and financial partner, today’s announcement demonstrates LEKOIL’s progress into the next phase of delivery and growth,” said Lekan Akinyanmi, Lekoil chief executive on January 5.
“The company expects the Phase Two development to be fully funded by industry players, which the company is already in discussions with,” said Akinyanmi of the field started in February last year.
Otakikpo’s Phase 1 production target is set at 10,000 barrels of oil per day. In December, the company reported that production rate amounted to 7,600 bopd and by early January output was described as approaching the 10,000 bopd target.
Otakikpo currently has an estimated 56.6 million barrels of gross unrisked 2C contingent resources and an additional 163 million barrels gross of Stock Tank Oil Initially In Place (STOIIP) upside on a P50, unrisked basis, according to Lekoil.
Investors will no doubt have been encouraged by the apparent strength of the ramp-up of the field to 20,000 bopd.
Aside from Otakikpo, the company also holds a 40% working interest, with a 70% economic interest, in the Ogo oil discovery. Ogo, located in the Dahomey basin, and it is estimated to host more than 774mln barrels of oil equivalent prospective resources.
In September, the company told investors that discussions continued with potential partners for the financing of the OPL310 appraisal.
The company also holds a 63% interest in the OLP 325 portfolio, which is described as a ‘promising’ deep water turbidite fan play. The exploration area spans some 1,200 square kilometres and it is estimated to have some 5.7bn barrels of prospective resources.
ISAAC ANYAOGU
