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Lekoil, the oil and gas exploration and production company with focus on Nigeria and West Africa, has restated its commitment to long-term growth following the release of its unaudited interim results for the six months ended June 30, 2020.
Within the period, the company successfully completed site survey operation on OPL 310. While Otakikpo production averaged 5,676bopd gross with 2,271bopd net to Lekoil Nigeria. The Group’s share of equity crude was 408,800 barrels.
Phase Two development plans at OPL 310 are underway, subject to securing funding, for the drilling of up to seven wells while the first two wells are expected to increase gross production to 10,000bopd. With major preparatory work concluded for the Ogo appraisal drilling programme and well locations selected, funding discussions are currently underway with industry partners.
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In the period ended 30, June 2020, Lekoil renewed its offtake agreement with Shell Western Supply and Trading Limited for two years and included the provision of a $3.5 million prepayment facility to aid short term liquidity. The facility, which is repayable from future crude oil liftings, has a tenor of five months and charges a market margin over LIBOR.
“Despite the challenges of the first six months of the year, we have navigated this demanding period with steady production and cash flow generation from Otakikpo while implementing a range of significant cost reduction initiatives across our operations,” Lekan Akinyanmi, Lekoil’s CEO noted.
