Lekoil pays extension fee for license offshore Nigeria

Nigerian oil company Lekoil has paid the $7.5 million license extension fee for OPL 310 as mandated by the Federal Government of Nigeria and the Ministry of Petroleum Resources.

OPL 310; Source: Lekoil

Lekoil said on Thursday that it had funded this payment from a mix of existing financial resources and debt facilities.

In accordance with the license extension, the oil company had to pay the extension fee within 90 days effective from August 2, 2019.

The company added that it had also paid outstanding general and administrative arrears of approximately $3 million together with $1 million of the $5 million operator’s fee due to its partner in the block, Optimum Petroleum.

The balance of this $4 million fee is due by February 2, 2020, which Lekoil expects to fund from a combination of existing financial resources and a potential funding partner.

Lekan Akinyanmi, Lekoil’s CEO, said: “We are pleased with the positive momentum being created with our partner Optimum and the Federal Government of Nigeria in taking the block forward. We continue to expect to unlock significant value in this asset for all stakeholders involved, who we thank for their patience and support.”

The three-year extension for the block was granted to Optimum and Lekoil by Nigerian authorities in early September.

Both Optimum and Lekoil agreed to progress the appraisal of the block and subsequent conversion to an oil mining license (OML) at the end of the exploration period, as soon as practicable.

Following a successful appraisal, a full field development (FFD) program will be undertaken for which Lekoil and Optimum are in advanced discussions with a potential funding partner.

Offshore Energy Today Staff

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