The Otakikpo JV has signed field management services agreement with Schlumberger for the development activities of the Otakikpo marginal field
Otakikpo JV has signed an infrastructure sharing and utilization agreement with IHIL. (Credit: Michal Jarmoluk/Pixabay.)
Nigeria-based oil and gas exploration and production company LEKOIL has announced that the Otakikpo joint venture has executed definitive agreements for the next phase of the Otakikpo marginal field development.
Otakikpo Joint Venture (Otakikpo JV) is a made of Green Energy International (GEIL), the operator of the Otakikpo marginal field, and the technical partner, LEKOIL Oil and Gas Investments (LOGL).
The JV has signed additional service agreements with Schlumberger that include comprehensive infrastructure upgrades and field management services in respect to the planned upstream drilling programme.
The upstream drilling programme will comprise phased drilling of up to seven new wells in Otakikpo with project, which involves capital expenditure of approximately $110m, of which LOGL is expected to provide funding of $44m.
Additionally, the first two wells drilling involve an estimated expenditure of $25m. The drilling is expected to increase gross production to about 10,000 bopd from the current gross rates of 5,755 bopd.
Otakikpo JV signs field management services agreement with Schlumberger
Lekoil said that Otakikpo JV has signed an infrastructure sharing and utilization agreement with Integrated Hydrocarbon Infrastructure (IHIL), a company owned by GEIL for the production from the Otakikpo marginal field.
As per the terms of the ISUA agreement, IHIL will assume the role of facility operator (from its parent, GEIL) and will build, own, operate and maintain certain flow stations, pipeline facilities and terminal facilities, which are to be used to evacuate crude oil produced from the Otakikpo marginal field.
Furthermore, the Otakikpo JV has signed field management services agreement with Schlumberger for the complete exploration, appraisal, evaluation, exploitation, development, production and associated activities of the Otakikpo marginal field.
In January this year, Lekoil announced the commencement on site survey on OPL 310 offshore block in Nigeria