Lekoil Hopeful Of First Oil At Otakikpo Field

Lekoil, the oil and gas exploration and development company with a focus on Nigeria and West Africa, has said that based on slight interruption in its activities at the Otakikpo-002 field, first oil from the field would now be expected to flow from the field to the Early Production Facility (“EPF”) by the end of third quarter of this year.

AkinyanmiThe company noted in an update of its production activities at the field that re-entry activities on Otakikpo-002 commenced with the successful drilling-out of the cement plugs in the 9.’’ casing.

It explained that while attempting to drill-out the cement plugs in the 7’’ liner, the rig crew noticed a potential critical safety issue around the crown block of the rig, which forced temporary suspension of re-entry activities, for safety reasons, pending repairs and replacement of equipment.

The company said no injuries were incurred due to the proactive actions of the trained rig crew, adding that safety remains the highest priority to Lekoil and its partner Green Energy International Limited (GEIL).

The company also noted that replacement parts may be sourced from outside the country and that the costs relating to the replacement of the rig equipment would be carried entirely by the drilling company, not Lekoil.

It said as a consequence of the interruption, first oil is now expected to flow from the Otakikpo-002 to the Early Production Facility (“EPF”) by the end of Q3, 2015.

Lekoil said it has made significant progress to date at Otakikpo, noting that all necessary approvals for the well re-entry plan were secured during 2014; while the contracts for the Phase-1 Field Development Plan, which included a rig, well services and an EPF, were tendered and awarded during the first half of this year.

The Company said it had to overcome series of significant logistical challenges related to road remediation and the building of a temporary bridge in order to bring the equipment to site, but said that as a result of the work the surrounding local community gained a significant socio-economic advantage.

The company explained that prior to rig mobilisation, large tracts of swamp land were reclaimed by sand-filling and land consolidation, noting that mobilisation of the rig equipment was completed and the rig mast was erected in preparation for well completion and production operations.

According to the CEO of Lekoil, Lekan Akinyanmi, “Phase 1 operations at Otakikpo are underway and we look forward to announcing first oil by end of Q3 2015. Safety remains our key priority and we will continue applying the highest standard to our operations. The Company would like to thank Shareholders for their continued support.”

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