…Expects cash proceeds of $7m

    …Marginal output set at 5,860 bpd

LEKOIL has confirmed that the Otakikpo Joint Venture has completed the first crude oil lifting of this year by the nominated off-taker, Shell Western Supply and Trading Limited (SWST), a member of the Royal Dutch Shell Plc group of companies).

The oil and gas exploration company expects to receive cash proceeds from this crude oil lifting of US$7.0 million, while the next lifting, of a similar quantity, is expected to occur within the next four to six weeks.

The oil and gas exploration and production company with a focus on Nigeria and West Africa, has put the gross output of Otakikpo Marginal Field in OML 11 at averaged 5,305 barrels per day, bopd.

In an a document made available to Orient Energy Review, Lekoil said for the full year 2019, production from Otakikpo averaged 5,305 bopd gross with 2,122 bpd net to LOGL (full year 2018: 5,345 bpd gross with 2,138 bpd net to LOGL). “For the first twenty (20) days of this year, production at Otakikpo has averaged 5,860 bopd gross with 2,344 bopd net to LOGL.

Further to the announcement on 1 July 2019, where the Otakikpo JV executed a memorandum of understanding (MOU), with Schlumberger and a subsidiary of a major international oil company, the parties remain aligned and committed to the expansion project,” the company said

According to the statement signed by the Chief Executive Officer of Lekoil, Lekan Akinyanmi, the MOU has the potential, subject to satisfaction of the conditions set as previously announced, to increase production on the field up to 20,000 bopd (8,000 bopd net to LOGL).

The phased development plan for the project consists of drilling between five (5) and seven (7) new wells as well as the expansion of processing infrastructure, which will be financed by a project finance debt facility.

A further update on the progress of this project will be provided shortly, the company said, adding that as at 31 December 2019, LOGL has an outstanding balance (including accrued interest) of interest-bearing term loans of US$19.2 million.

LEKOIL’s CEO said, “Otakikpo continues to provide steady production and cash flow for LEKOIL. We are delighted with the collaborative progress being made by all parties towards the development and transformation project planned for Otakikpo, that is aimed at increasing production from the field. We remain fully focused to generate value on this asset for all shareholders.”

Chibisi Ohakah

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