Lekoil secures funding for appraisal, development activities at Ogo discovery

Jan. 2, 2020

Lekoil has secured funding for the appraisal drilling and initial development program activities on Ogo field.

Lekoil has secured funding for the appraisal drilling and initial development program activities on Ogo field. Lekoil 310 Ltd. entered into a binding loan agreement with the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar (QIA) in the amount of $184.0 million. The facility will be disbursed in five tranches over 11 months, with the first drawdown expected in February.

Lekoil and Optimum Petroleum Development Co., its partner in and operator of OPL 310, agreed in August 2019 to progress activities at the Ogo light oil discovery near shore western Nigeria amid an ongoing dispute as to the legitimate ownership of a 22.86% stake in the license (OGJ Online, Aug. 30, 2019).

Ogo-1 and Ogo-1 ST encountered hydrocarbons within the SynRift and PostRift in 2013 (OGJ Online, June 26, 2013). Lekoil and Optimum are planning a 2-well program targeting dynamic flow data from well test while preserving the drilled wells as producers. First well spud could occur in the second half of this year.