NIGERIA: Lekoil Reports Technical Work for Drilling of 2 Wells at Otakikpo Ongoing

Lekoil has reported that it continues undertaking technical work for drilling of two (2) additional production wells at Otakikpo producing marginal oilfield in OML11.

This is part of the companies plans to ramp up production to 15-20000bpd from the current 5110bpd as per October figures with a total of seven wells planned for at a cost of $110 million..

Drilling of the first two wells, estimated at US$25.0 million, to increase gross production to approximately 10,000 bopd which can be accommodated by existing infrastructure

The company did not however provide any update on financing required to drill additional production wells indicating no material progress.

To date Lekoil has executed definitive agreements which are made up of service agreements with Schlumberger and cover the comprehensive infrastructure upgrades and field management services in relation to the planned upstream drilling programme.

Lekoil has 40 per cent interest stake at Otakikpo.