The joint venture has also renewed the Otakikpo Marginal Field license for a period of 20 years
Nigeria-based oil and gas exploration company Lekoil and its partner Green Energy International have approved the second phase development of the Otakikpo oilfield project in the Niger Delta, Nigeria.
The joint venture is presently finalising heads of terms with “Anchor” engineering, procurement, construction and commissioning vendors for cost and schedule certainty to let Standard Chartered Bank close project financing and complete preparation for project execution following the project approval.
The Standard Chartered Bank is expected to serve as the lead financial advisor for the project and provide the required financial advisory, security, and banking services.
Additionally, the joint venture has renewed the Otakikpo Marginal Field license for a period of 20 years following the payment of $1m to the Department of Petroleum Resources (DPR) for the license Renewal fee of $400,000 net to LEKOIL.
The consortium of GEIL, LEKOIL and Schlumberger will structure a multidisciplinary project management team in which Schlumberger will act solely as a technical partner to provide oilfield services and project management services to assist in ramping up production and long-term field management.
The development project scope includes the construction of a terminal for evacuation.
US-based oilfield services company Schlumberger has evaluated the capacity of the infrastructure to be capable of producing 10,000 bopd (4,000 bopd net to LEKOIL Nigeria) and, with some debottlenecking, up to 12,000 bopd gross (4,800 bopd net to LEKOIL Nigeria).
The joint venture expects the first two wells of the phased development plan to bring production up to this level.
Lekoil JV had signed MoU for development of Otakikpo in OML 11 in July
In July, Lekoil, through its Otakikpo Joint Venture (JV) with Green Energy International (GEIL), had signed a Memorandum of Understanding (MOU) with Schlumberger and subsidiary of a major international oil company.
The MOU covers a comprehensive infrastructure sharing and drilling programme around a group of marginal field assets in OML 11.