According to the 2018 financial report,
production at the Otakikpo marginal
field averaged approximately 5,345 bopd, while strategic decisions and
steps towards increasing production commenced. At the Otakikpo marginal field,
Phase Two preparations for development commenced with the acquisition of 3D
seismic data acquisition and interpretation, while an updated Competent
Person’s Report (CPR) has nearly been completed.
Apart from investment in the Otakipko
marginal fields, LEKOIL has made further investment in OPL325 and its lawsuit
connected to OPL 310 has been withdrawn to enable engagement with partner, Optimum Petroleum Development Limited
(“Optimum”), and the regulator, to conclude agreements and resolve all
outstanding issues.
Technical Evaluation on OPL325 has been
completed with 11 prospects and leads estimated to contain potential gross
aggregate Oil-in-Place volumes of over 5,700 mmbbls (un-risked, Best Estimate
case) identified. After finalising terms for a Production Sharing Contract on
the block, LEKOIL intends to farm-down a portion of its 62 per cent. working
interest following a detailed prospect/lead risking study.
Though LEKOIL posted a loss of $7.8
million in the 2018 financial year, as against profit of $6.5 million in 2017,
there are plans to ramp up production at the Otakipko marginal fields to
approximately 15,000 to 20,000 bopd. Subject to agreement on funding with
partners, plans are underway for a three to five well drilling programme, with
the aim of meeting the production target.
According to the Chief Executive
Officer of LEKOIL, Olalekan Akinyanmi,
“The priority for 2019 is to grow production volumes at
Otakikpo through Phase Two development (subject to funding) to reach gross
volumes of 15,000 to 20,000 bopd. The first step has already occurred, with 3D
seismic data acquisition and interpretation now completed.
“We also continue to advance
towards the start of the appraisal drilling programme on Ogo in OPL 310. We
will work with our joint venture partner, Optimum, to negotiate agreements that
will allow us to make progress on the block, after securing all relevant
regulatory extensions and approvals.
“The next year should
therefore provide key catalysts for value appreciation for shareholders as we
move forward in building a leading Africa-focused exploration and production
business.”
LEKOIL has an ambition of becoming the
world’s leading exploration and production company focused on Africa. In
realising this vision, the company seeks to maximise value for stakeholders in
a sustainable manner, by operating with integrity and leveraging local
resources – to the benefit of the countries and communities in which it
operates.
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