Green Energy and Lekoil are working through financing to fund the second phase development of the Otakikpo marginal field in eastern Nigeria, currently producing around 6,000Barrels of Oil Per Day.
There has been a little delay, as the drilling was earlier expected to have commenced in October 2020.
The funds are to come from a consortium of financiers, including Standard Chartered Shell Trading and an EXIM bank. Drilling may now start by early December.
The original plan was to increase production from 6,000 barrels per day (BOPD) to 20,000BOPD, but the prevailing conditions may keep the immediate ramp up to around 12,000BOPD.
Schlumberger is the main subsurface service vendor.
Green Energy had signed a Memorandum of Understanding (MoU) with a consortium of international financiers for a package of more than $350Million, for the project funding.
The Field Development Plan FDP of the project involves the drilling of seven additional wells (there are two producing wells already) and expansion of the crude processing infrastructure. The plan also includes the construction of a 1.3Million barrels onshore terminal and a 17 kilometre export pipeline to connect the terminal to an offshore loading system.