Otakikpo Marginal Field to Commence Operation in June

The Otakikpo marginal field in oil mining lease, OML, 11 is expected to kick off commercial production by end of second quarter of 2016.

The oil field is owned by a Joint Venture (JV) with Green Energy International Limited (GEIL) as the operator and Lekoil Oil and Gas Investment Limited as the technical and financial partners.

According to the company, the Otakikpo-002 well flowed oil from two production tests on zones C5 and C6 concluded on April 10. Zone C5 flowed at a peak rate of 6,404 barrels of oil per day (bopd) while C6 zone flowed oil at a peak rate of 5,684 bopd for over 24 hours.

Production testing at the well was curtailed due to storage capacity limits on well-testing equipment, the JV said, adding it expects to start commercial production by the end of second quarter of 2016.

The Joint Venture said: “As previously announced on September 7, 2015, the lower E1 zone produced from the first of four planned production tests, flowing oil at various sizes for over 24 hours at a peak rate of 5,703 bopd. 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.

“Following the completion of Otakikpo-002, well re-entry operations on Otakikpo-003 are expected to begin later in second quarter (Q2) and will target the E1 and C5 zones. The company expects to commence commercial production from Otakikpo-003 in Q3 2016 and expects to be producing 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.”

The company said following the conclusion of Phase 1 of the FDP, which is expected by the end of 2016, the company will proceed to Phase 2 with new wells planned to bring aggregate production to an estimated 20,000 bopd by the end of 2017.

The Otakikpo Joint Venture with LEKOIL as Financial and Technical Partner and Green Energy International Limited (GEIL) as operator began work in December 2014.

The Chief Executive Officer, Lekoil, Lekan Akinyanmi, said: “In about a year and half, Lekoil and its partner GEIL have managed to bring to life a marginal oil field, which is expected to produce 10,000 bopd by year end, demonstrating its technical and financial strengths as well as illustrating the fast-track approach by the Department of Petroleum Resources (DPR) to develop previously marginal fields and unlocking value for the benefit of Nigeria.

 

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