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Wednesday, June 17, 2015
Lekoil has been given the go ahead by Nigeria’s Ministry of Petroleum Resources to complete the transfer of the 40% participating interest in the Otakikpo Marginal Field to Lekoil Oil and Gas Investment Ltd. (LOGIL), a wholly owned subsidiary of the company. Lekoil now exercises the rights and benefits of its 40% economic interest in Otakikpo via the farm-in agreement and a JOA signed in May 2014.
Otakikpo is sited in a coastal swamp on OML 11, adjacent to the shoreline in the south-eastern part of the Niger Delta. OML 11 is held by the SPDC JV which includes the NNPC, SPDC, Total E&P Nigeria, and Nigerian Agip Oil Co. Otakikpo was awarded to Green Energy International by the Department of Petroleum Resources of Nigeria in 2011.
The consideration for the acquisition of LOGIL’s interest in Otakikpo comprised a signature bonus of $7 million, which was paid to GEIL in May 2014 and a production bonus of $4 million which is payable on meeting certain production milestones. Operations are at an advanced stage to ensure that Otakikpo attains first oil around mid-2015 and the company expects to provide an operational update shortly.
Lekan Akinyanmi, the company’s CEO commented: “Having signed the farm-in agreement with Green Energy last year, we welcome the progress that has been made to date and are delighted to have received ministerial consent ahead of first oil which is scheduled to begin in the coming weeks. Otakikpo is an asset with tremendous potential and I am delighted that Lekoil has been able to demonstrate its ability as a strong Technical and Financial partner. We continue our hard work at site, with our partners, to deliver first oil for the benefit of our host communities, regulators and stakeholders.”
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