Green Energy, Lekoil commence production from Otakikpo field

PHOTO: www.proactiveinvestors.co.uk

PHOTO: www.proactiveinvestors.co.uk

A Nigerian independent oil and gas company, Green Energy International Limited (GEIL); and Lekoil, the oil and gas exploration and production company, with operational focus on Nigeria and West Africa, have announced commencement of oil production from the Otakikpo marginal field.

The oil field is located on the South-Eastern shoreline of the Niger Delta.

Green Energy is the operator of the new production field, while Lekoil is the financial and technical partner for the joint venture scheme.

According to Lekoil, following the successful re-entry of the Otakikpo-002 well, first oil flowed to surface late on September 5, with production testing being conducted over the weekend.

It disclosed that the Otakikpo-002 well produced from only the first of four planned production strings, and flowed oil at various choke sizes for over 24 hours at a peak rate of 5,703bopd at a 36/64-inch choke, significantly ahead of expectations.

”The addendum to the competent persons report, prepared by AGR TRACS International Limited released by the company on January 21 2015, indicated that it expected to produce around 6,000bpd from the four strings at Otakikpo-002 and -003.

“Based on these preliminary results, the directors of Lekoil currently believe that this guidance is likely to be exceeded substantially, although further testing and analyses will be required before the company is able to provide formal guidance”, it added.

Chief Executive Officer, Lekoil, Lekan Akinyanmi: said, “We are delighted to announce that Lekoil is now an oil producer. We always believed in the potential of Otakikpo but the production rate from the first re-entered well has exceeded our expectations. This is a real achievement for the Otakikpo Joint Venture. I would like to thank the entire team that has worked so hard to deliver this result, our partners Green Energy, investors and our host communities for their continued support.”

“However, there is a lot more to be done. We expect to finalise the evacuation infrastructure during the official well test period and determine the optimal production rate that maximises value from the two wells.”

“Production at Otakikpo represents the first major step in fulfilling our strategy to be the world’s leading E&P company focused on Africa and maximising value for our stakeholders and host communities in a sustainable manner. Safety remains our key priority and we will continue applying the highest standard to our operations as we grow production to, and now beyond, our initial Phase 1 target.”

Chairman of GEIL, Prof. Anthony Adegbulugbe, was full of appreciative of the milestone achieved so far within the short span of moving to the field.

He also commended the host communities for the partnership with the company and hoped that the people would allow the company enjoys a hitch free and conducive environment to unfold its unique development initiatives for the overall good of the people and the nation.

He said: “The project offers considerable benefit to all stakeholders and has the strong potential of a gas flares out solution, boosting the economic development potentials of the community, and indeed the nation, while bringing profitable returns to its investors.

“In getting this far, we have enjoyed the support and cooperation of the regulatory bodies, particularly the DPR and NERC, and the Head Farmors led by Shell. We also appreciate the cooperation and hard work of our technical partners, Lekoil, as well as all our employees, consultants and contractors whose common sense of purpose and drive for excellence has brought us this commendable result”.

Technical Director of GEIL, Dr. Bunu Alibe commended the company’s technical team in achieving this feat in record time.



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