Exile Resources and its joint venture partners in the Akepo field development project in Nigeria have said that the Akepo-1st well will be produced through a pipeline to a nearby onshore facility, eliminating the need for an early production system.

The pipeline will span approximately 13km to the nearby onshore facility.

The contract for the pipeline has been awarded and construction will begin in December 2010, with first production targeted for May 2011.

Exile Resources said that although there is a slight delay in first oil production from the field, the decision to forego the early production system has substantially improved the project’s economics.

In addition to Akepo-1st, the Akepo field joint venture partners have identified an additional prospect within the license area.

Prospect A, located north of Akepo-1st, is an easily accessible, low-cost exploration opportunity that could easily be tied into the permanent pipeline system.