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Wednesday, June 13, 2018
Nigeria’s Otakikpo has been nothing but a positive for indigenous firm Lekoil over 2017. According to the company the field ended the year producing over 7,000 bpd continuously. The company is looking to continue to add to its production levels, hitting 20,000 bpd by 2020.
The Otakikpo JV partners (with Lekoil as Financial and Technical Partner to Green Energy International Limited as Operator) remain focused on Phase Two of the Otakikpo Field Development Plan which aims to increase steady production up to approximately 20,000 bpd in 2020.
Phase 2 of the development includes acquiring 3D seismic coverage of the entire Otakikpo field and the incremental development of the rest of the field with new wells planned. As an initial step in delivering Phase 2, the Otakikpo JV signed a contract with Sinopec Changjiang Engineering Services Limited (Sinopec) to acquire 197 sq km of 3D seismic data at Otakikpo, which commenced on February 1, following the securing of permits.
This survey is on schedule to be completed this month, followed by seismic processing and a subsequent release of an updated Competent Person’s Report (CPR). The completion of this seismic survey and planned development wells in the Phase Two program will help to gather more information to optimize development and production. Drilling will commence after interpreting the seismic survey, as they continue to focus on increasing production up to the 20,000 bpd target.
Lekoil said that it has completed 10 liftings since production commenced and received cash proceeds within 30 days of each lift in line with the Crude Sales Agreement with Shell Trading. The company has realized an average premium for the Otakikpo blend of $1 or more above Brent pricing since inception. At current oil prices, the cash netback is above $30 per barrel.
Lekan Akinyanmi, Lekoil’s CEO, said “Our priority for 2018 is to continue to grow production volumes and profitability at Otakikpo. In tandem, we will aim to progress the appraisal and development of our Ogo discovery in OPL 310. Once we receive the second Ministerial Consent, we plan to finalize funding plans for an appraisal drilling program. The program will comprise two wells which will include flow testing. Our aim is to secure enough information to enable the partners to take a FID in 2019 and then to proceed with development in partnership with GE Oil & Gas
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