Lekoil, the Africa focused oil and gas firm, has taken a step toward continuous production from marginal fields in Nigeria, with commercial production on track by the end of June.
The company’s latest update from the Otakikpo marginal field secured peak flow of between 5,684 and 6,404 bopd in two separate zones. Production testing at the well was curtailed due to storage capacity limits on well-testing equipment.
Encouraging flow tests of upper zones, C5 and C6, confirm the sizeable potential of the oil field Lekoil said.
It expects to be producing 10,000 bopd by year-end 2016 with facilities construction and permits at an advanced stage to meet the company’s timeline for commercial production.
Following the conclusion of Phase 1 of the field development plan, which is expected by the end of 2016, Lekoil will proceed to Phase 2 with new wells planned to bring aggregate production to a targeted estimated 20,000 bopd by the end of 2017.
Chief executive Lekan Akinyanmi, said, “In about a year and half, Lekoil and its partner GEIL have managed to bring to life a marginal oil field which is expected to produce 10,000 bopd by year-end demonstrating its technical and financial strengths as well as illustrating the fast-track approach by the Department of Petroleum Resources to developing previously marginal fields and unlocking value for the benefit of Nigeria.
“These successful tests represent another major step towards continuous production and are the most significant accomplishment since operations began.”