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Crude Oil Production: Lekoil to add 20,000bopd


By Anthony Okafor

The nation’s crude oil production is set to receive a major boost, as indigenous oil and gas firm, Lekoil has indicated that its strategic investments could lead to an additional 20,000bopd increase in national oil production in 2019.

The nation’s crude oil production, including condensates and natural gas liquids, stood at 1.82 million barrel per day, mbd, in May, 2019. With this development, the production level will receive a major boost.

Meanwhile, Lekoil in its 2018 annual report said it had already conducted and concluded 3D seismic data acquisition and interpretation which is the first phase of production.

Commenting on the development, the Chief Executive Officer, Lekoil, Olalekan Akinyanmi, said: “The priority for 2019 is to grow production volumes at Otakikpo through phase two development (subject to funding) to reach gross volumes of 15,000 to 20,000 Barrels of Oil Per Day, bopd.

Crude Oil Production: Lekoil to add 20,000bopd
Crude Oil Production: Lekoil to add 20,000bopd

“At the Otakikpo field which is sited in a coastal swamp location in Oil Mining Lease (OML) 11, production levels averaged approximately gross 5,345 bopd in 2018 even though Lekoil only started drilling in the first quarter of 2017. We are determined to further exploit the asset to the benefit of all stakeholders in the next few years.

“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 towards 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.

“Profitability in 2018 was not possible because of the immense investment that was undertaken within the year, as is common in the oil and gas industry.”

READ MORE: We don’t have plan to establish ‘Ruga’ in South-East, South-South – Gov. Umahi

A breakdown of the company’s 2018 financial results also showed that it had lost significant ground in terms of profit, compared to 2017 when the young company’s profit stood tall at US$6.5 million.

Lekoil is an Africa focused oil and gas exploration and production company with interests in Nigeria and Namibia. The Company was founded in 2010 by a group of leading professionals in the international upstream oil and gas industry as well as in global fund management and investment banking.


 

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