Cayman Islands’ registered Lekoil has upgraded the 2C reserves estimate on the Otakikpo marginal field offshore Nigeria by 45%.
Otakikpo is in oil mining lease (OML) 11, in a swamp area, offshore Nigeria, adjacent to shoreline in the eastern part of the Niger Delta.
Development plans for the field could start later this year, with full-field development in 2016-18. This could see two recompletions of existing wells, followed by a seven further wells, five of which would be vertical and two S-shaped, and four of these being dual completions. Export would be via a nearby purpose build jetty to a floating storage and offloading vessel and offloaded to barges. Two years after first oil, a 30km crude export pipeline is proposed.
According to analysis by AGR TRACS International, the gross unrisked 2C contingent resources for Otakikpo are 56.75MMbbl. This compares to the 36MMbbl of gross oil resources in the most recent 2C resource estimates available when Lekoil Nigeria, 90% owned by Lekoil, acquired its 40% of the interest in Otakikpo in May 2014.
In addition, AGR TRACS also estimated stock tank oil initially in place (STOIIP) ranges for four exploration prospects within the onshore part of the Otakikpo acreage. In total, these are estimated (on a P50, unrisked basis) to contain potential gross aggregate 162.8MMbbl oil in place.
Lekoil also believes that additional prospectivity exists in the southern (shallow water) portion of the acreage, which will be defined by further studies and appraisal.
Lekan Akinyanmi, Lekoil’s CEO, said, “This CPR increases estimated unrisked oil resources net to Lekoil by over 45% and has reinforced the economics of the development. This is a robust project that will provide us with near term production, cash flow and exploration upside as we continue to pursue our wider goal of becoming a much larger, Africa-focused exploration and production company.”
Otakikpo was discovered in OML 11 in 1981 and three wells have been drilled on it to date, based on 2D seismic shot by Shell between 1971 and 1982. AGR TRACS says, overall, the reservoir section is built up of a series of stacked channels, each containing good reservoir quality sands. It is about 32km east of the Bonny Island oil terminal.
Lekoil acquired its 40% stake in OML 11 from Green Energy, for a $7 million farm-in fee, and a production bonus of $4 million to be paid after production starts. Green Energy took on OML 11 when it was farmed out by Shell Petroleum Development Company JV (NNPC/Shell/Total/Agip) in January 2014.
There is no approved development plan at present.Cayman Islands’ registered Lekoil has upgraded the 2C reserves estimate on the Otakikpo marginal field offshore Nigeria by 45%.
Otakikpo is in oil mining lease (OML) 11, in a swamp area, offshore Nigeria, adjacent to shoreline in the eastern part of the Niger Delta.
Development plans for the field could start later this year, with full-field development in 2016-18. This could see two recompletions of existing wells, followed by a seven further wells, five of which would be vertical and two S-shaped, and four of these being dual completions. Export would be via a nearby purpose build jetty to a floating storage and offloading vessel and offloaded to barges. Two years after first oil, a 30km crude export pipeline is proposed.
According to analysis by AGR TRACS International, the gross unrisked 2C contingent resources for Otakikpo are 56.75MMbbl. This compares to the 36MMbbl of gross oil resources in the most recent 2C resource estimates available when Lekoil Nigeria, 90% owned by Lekoil, acquired its 40% of the interest in Otakikpo in May 2014.
In addition, AGR TRACS also estimated stock tank oil initially in place (STOIIP) ranges for four exploration prospects within the onshore part of the Otakikpo acreage. In total, these are estimated (on a P50, unrisked basis) to contain potential gross aggregate 162.8MMbbl oil in place.
Lekoil also believes that additional prospectivity exists in the southern (shallow water) portion of the acreage, which will be defined by further studies and appraisal.
Lekan Akinyanmi, Lekoil’s CEO, said, “This CPR increases estimated unrisked oil resources net to Lekoil by over 45% and has reinforced the economics of the development. This is a robust project that will provide us with near term production, cash flow and exploration upside as we continue to pursue our wider goal of becoming a much larger, Africa-focused exploration and production company.”
Otakikpo was discovered in OML 11 in 1981 and three wells have been drilled on it to date, based on 2D seismic shot by Shell between 1971 and 1982. AGR TRACS says, overall, the reservoir section is built up of a series of stacked channels, each containing good reservoir quality sands. It is about 32km east of the Bonny Island oil terminal.
Lekoil acquired its 40% stake in OML 11 from Green Energy, for a $7 million farm-in fee, and a production bonus of $4 million to be paid after production starts. Green Energy took on OML 11 when it was farmed out by Shell Petroleum Development Company JV (NNPC/Shell/Total/Agip) in January 2014.
There is no approved development plan at present.
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