‘Value Appreciation for Shareholders Key to LEKOIL’s Strategy’

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Eromosele Abiodun

The Chief Executive Officer, LEKOIL Nigeria Limited, Mr Olalekan Akinyanmi, has indicated that value appreciation for shareholders is central to the company’s 2019 strategy.

In a statement over the weekend, he said the company’s priority for 2019, was to grow production volumes at Otakikpo through Phase two development (subject to funding) to reach gross volumes of 15,000 to 20,000 bopd.  

According to him, “The first step has already occurred, with 3D seismic data acquisition and interpretation now completed. 

“The next year should therefore provide key catalysts for value appreciation for shareholders as we move forward in building a leading Africa-focused exploration and production business.” 

“We also continue to advance toward the start of the appraisal drilling programme on Ogo in OPL 310.  We will work with our joint venture partner, Optimum to negotiate agreements that will allow us to make progress on the block, after securing all relevant regulatory extensions and approvals,’ Akinyanmi said.

He added, “Apart from our interests in OML 310, the company and its partners finalized Technical Evaluation on OPL 325 in January 2018. Its consultants, Lumina, identified and reported on 11 prospects and leads which were estimated to contain potential gross aggregate Oil-in-Place volumes of over 5,700 mmbbls (un-risked, Best Estimate case). 

“After finalising terms for a Production Sharing Contract on the block, LEKOIL intends to farm-down a portion of its 62 per cent working interest following a detailed prospect/lead risking study.

“LEKOIL 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. 

“Working with partners, government and regulatory agencies, the company has sustained production levels and continues an aggressive investment campaign which is projected to result in increased production and profitability in the short to medium term.”