Otakikpo partners award seismic survey contract as part of phase 2 of development

Business & Finance

Partners in the Otakikpo marginal field located in OML 11 in Nigeria have awarded a contract for 3D seismic coverage of the field as part of Phase Two of the field development plan.

As the Otakikpo field nears Phase One target production of 10,000 bopd, the Phase Two aims to increase production from the field to up to 20,000 bopd.

Green Energy International Limited (GEIL) is the operator of the field and Lekoil is its financial and technical partner.

According to a Thursday statement by Lekoil, the joint venture between the two companies has signed a contract with Sinopec Changjiang Engineering Services to acquire 197 sq km of 3D seismic data at the Otakikpo field, onshore and offshore in the south-eastern part of the Niger Delta, to update the existing 2D coverage.

Lekoil said that the seismic acquisition over Otakikpo is expected to start in 1Q 2018 to kick-off phase two development of Otakikpo. All relevant permits are currently being pursued prior to starting mobilization.

Following the completion of this seismic acquisition, the company will then process and interpret the new 3D seismic data, subsequently releasing an updated Competent Person’s report.

Otakikpo currently has an estimated 56.6 mmbls of gross unrisked 2C contingent resources and an additional 163.0 mmbls gross of Stock Tank Oil Initially In Place (STOIIP) upside on a P50, unrisked basis.

Lekan Akinyanmi, Lekoil CEO, said, “With significant milestones already achieved in 2017 as the Otakikpo Technical and Financial Partner, today’s announcement demonstrates Lekoil’s progress into the next phase of delivery and growth. The company expects the Phase Two development to be fully funded by industry players, which the company is already in discussions with.”