Lekoil Targets 10,000bpd in Otakikpo Field by End of 2016

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  •  Releases well results

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Africa focused oil and gas exploration and production company with interests in Nigeria and Namibia, Lekoil Limited has announced the successful well tests of C5 and C6 zones in the Otakikpo Marginal Field in Oil Mining Lease (OML) 11 at the rates of 6,404 barrels of oil equivalent per day and 5,684 bopd and with a target to hit 10,000 barrels per day by the end of this year.

The company, at the weekend, provided an update on operations and the well results from the Otakikpo Marginal Field, being undertaken by the joint venture (JV) partners — Green Energy International Limited (GEIL) as the operator and Lekoil Oil and Gas Investment Limited as technical and financial Partner.
According to the results, the Otakikpo-002 well flowed oil from two upper zones during two production tests concluded on April 10, 2016.

The results showed that the C5 zone flowed at a peak rate of 6,404 bopd and according to geological parlance, at a 36/64 choke, while the C6 zone successfully flowed oil at a peak rate of 5,684 bopd at a 36/64 inch choke, for over 24 hours.

The company further stated that the production testing at the well was curtailed due to storage capacity limits on well-testing equipment.
The JV however expects to start commercial production by the end of second quarter of 2016.
“As previously announced on September 7, 2015, the lower E1 zone produced from the first of four planned production tests, flowing oil at various choke sizes for over 24 hours at a peak rate of 5,703 bopd at a 36/64 inch choke,” the company added.

“However, during completion operations the well encountered cementing issues resulting in the temporary suspension of the E1 zone to allow remedial work to take place. To keep Phase 1 of the Field Development Plan (FDP) on track and under budget, the JV prioritised production from the second and third planned production zones, in the C5 and C6 reservoirs, and will pursue development options for the E1 zone in the future. The encouraging flow tests of upper zones, C5 and C6, reconfirm the sizeable potential of the oil field,” the results indicated.

The company further revealed that following the completion of Otakikpo-002, well re-entry operations on Otakikpo-003 are expected to begin later in second quarter of this year and will target the E1 and C5 zones.
The company said it expected to commence commercial production from Otakikpo-003 in third quarter of 2016 with a target of 10,000 bopd by year-end 2016.

“The facilities construction and permits are at an advanced stage to meet the Company’s timeline for commercial production. Following the conclusion of Phase 1 of the FDP, which is expected by the end of 2016, the company will then proceed to Phase 2 with new wells planned to bring aggregate production to an estimated 20,000 bopd by the end of 2017,” the company added.

Chief Executive Officer of Lekoil, Mr. Lekan Akinyanmi, said in about a year and half, Lekoil and its partner, GEIL had managed to bring to life a marginal oil field, which is expected to produce 10,000 bopd by year-end.
He said the feat was a demonstration of its technical and financial strengths as well as illustrating the fast-track approach by the Department of Petroleum Resources (DPR) to developing previously marginal fields and unlocking value for the benefit of Nigeria.

“Lekoil as a Financial and Technical partner also commends the support of its stakeholders and host communities whose people and services stand to realise sustainable value. These successful tests represent another major step towards continuous production and are the most significant accomplishment since operations began – demonstrating our disciplined approach to developing an asset efficiently. Safety remains our key priority and we will continue applying the highest standard to our operations as we grow production to, and beyond, our initial Phase 1 target,” Akinsyanmi explained.

The Otakikpo Joint Venture with Lekoil as financial and technical partner and Green Energy International Limited (GEIL) as operator began operations in December 2014.
Otakikpo is sited in a coastal swamp location in OML 11, adjacent to the shoreline in the south-eastern part of the Niger Delta.