MOU targets Otakikpo work in Niger Delta

A JV of Green Energy International and Lekoil has signed an MOU with Schlumberger and “a subsidiary of a major oil company which has been operating in Nigeria for more than half a century” to advance development of Otakikpo and other fields in Nigeria.

Jul 1st, 2019

A joint venture of Green Energy International Ltd., Abuja, and Lekoil Ltd., London, has signed a memorandum of understanding with Schlumberger Ltd. and “a subsidiary of a major oil company which has been operating in Nigeria for more than half a century” to advance development of Otakikpo and other marginal fields on Oil Mining License (OML) 11 in Nigeria’s Niger Delta.

Green Energy operates the field under a farmout from Shell Petroleum Development Co. Nigeria, a joint venture partner in OML 11 with Nigerian Petroleum Development Co., a unit of Nigerian National Petroleum Corp. (OGJ Online, Feb. 21, 2017). Shell’s role as operator of OML 11 has been subject to a recent political dispute.

The MOU covers infrastructure-sharing and marginal-field drilling.

Phased development in the project includes the drilling of as many as five wells in Otakikpo field, which started commercial production in 2017 at an initial rate of 5,000 b/d of oil from two recompleted wells and now produces about 6,000 b/d. Lekoil expects second-phase development to raise production to about 20,000 b/d.

The project covered by the MOU also includes expanding processing facilities, including an onshore terminal, and construction of a pipeline connecting the terminal to an offshore buoy.

Schlumberger will be technical and project-execution partner and provide oil field and project-management services during ramp-up of production and long-term field management.

Green Energy has a 60% interest in the project. Lekoil Nigeria, a 90% subsidiary of Lekoil, holds 40%.

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