Lekoil Limited, an Africa-focused oil and gas exploration and production company with interest in Nigeria and Namibia, has stated that it would focus on scaling up production volume and productivity at its Otakikpo oil field.
The company, which currently produces 8,000 barrels of oil per day at Otakikpo field, said it plans to raise production to 20,000 barrels of oil per day by 2020.
According to the companyâ€™s audited results for the year to December 31, 2017, Lekoil achieved revenue of $30.8 million.
Following this performance, it is planning an aggressive production boost and was already in the process of securing extra funding from industry sources to finance a second phase of development.
Besides, the company also added that it was planning a two-well appraisal drilling programme at Ogo field, with long lead time items such as wellheads already ordered.
This is as it awaits governmentâ€™s approval on its acquisition of an additional 22.86 per cent stake in OPL 310 which will take its total interest in the asset to 40 per cent. Once that is all sorted, Lekoil expects to finalise its funding plans for the drilling programme.
â€œOur priority for 2018 is to continue to grow production volumes and profitability at Otakikpo. Our planning for Phase 2 field development is already underway, targeting 20,000 bopd to be reached in 2020, subject to securing additional funding from industry sourcesâ€ said Chief Executive Officer, Lekan Akinyanmi.
Akinyanmi stated that part of the growth strategy includes further appraisal and development work at the Ogo field. â€œIn 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 finalise funding plans for an appraisal drilling programme. The programme will comprise two wells which will include flow testing.â€
According to him: â€œOur aim is to secure enough information to enable the partners to take a Final Investment Decision in 2019 and then to proceed with development in partnership with GE Oil & Gas. Lekoil had earlier signed a Memorandum of Understanding with GE Oil & Gas for the full field development of Ogo field.â€
Chairman, Lekoil, Samuel Adegboyega, added, â€œTo our great satisfaction, 2017 saw Lekoilâ€™s first commercial production, and first crude oil sales. These are perhaps the most important milestones in the history of the Company and represent the fruits of efforts that have been ongoing since LEKOILâ€™s inception in 2010.â€
The company was founded in 2010 by a group of leading professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.
Lekoil owns majority of Block 2514B in Namibia and is successfully listed on the AIM market of the London Stock Exchange.