Otakikpo partners to go ahead with phased development program

The joint venture partners at Nigerian Otakikpo field have agreed to go ahead with the phased development program of the field following a review of on-site facilities. The phase two development at Otakikpo would see the partners, subject to securing the necessary funding, increase production towards 15-20,000 bopd. 

Otakikpo map; Source: Lekoil

Lekoil said in its half-year financial report that the JV partners had in September agreed to the phased development project after a joint on-site review by the Otakikpo partners and Schlumberger.

The JV signed in July signed a Memorandum of Understanding with the oilfield services provider and an undisclosed “major international oil company” for a comprehensive infrastructure sharing and drilling program around a group of marginal field assets in OML 11 offshore license containing the Otakikpo field.

The companies verified that the existing production facility has the capacity to produce 10,000 bopd and up to 12,000 bopd gross with further debottlenecking.

Lekoil added that the first two wells of the phased development plan would probably bring production up to this level.

The phased development plan of the project consists of drilling up to five new wells, expanding processing infrastructure to comprise an onshore terminal to be located outside the Otakikpo field operations area, construction of an export pipeline connecting the onshore terminal to an offshore buoy to handle Otakikpo and other fields in oil mining lease (OML) 11.

Production from the field in the first half of 2019 averaged 5,822 bopd gross with no downtime, compared to 2,042 bopd for the same period in 2018.

The Otakikpo field, located in a coastal swamp location in OML 11, adjacent to the shoreline in the south-eastern part of the Niger Delta, is operated by Green Energy International Limited with Lekoil, as a financial and technical partner, holding a 40 percent interest.

Lekoil also said that it had started portfolio work to prepare one of the prospects in the OPL 325 license for drilling. Once that is complete, the company intends to begin the farm-down process.

The OPL 325 license is located offshore in the Dahomey Basin, straddling the western Niger Delta, 50 kilometers south of OPL 310. Lekoil holds a 62 percent equity interest in OPL 325, through Ashbert Oil and Gas Limited.

The exploration area spans some 1,200 square kilometers and it is estimated to have some 5.7 mmbls of prospective resources.

Offshore Energy Today Staff

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