Indigenous oil and gas firm, LEKOIL, yesterday said with its strategic investments this year, it hopes to ramp up production to 20,000 barrels per day (bpd) by adding 15,000bpd.
Its CEO, Olalekan Akinyanmi, said the priority of the oil major this year is to increase oil production.
“The priority for 2019 is to grow production volumes at Otakikpo through Phase Two development (subject to funding) to reach gross volumes of 15,000 to 20,000 bpd. The first step has already occurred, with 3D seismic data acquisition and interpretation now completed,” he said in a note that accompanied its 2018 annual report which was released in late June.
At the Otakikpo field which is sited in a coastal swamp location in oil mining lease (OML) 11, production levels averaged approximately gross 5,345 bpd in 2018 even though LEKOIL only started drilling in the first quarter (Q1) of 2017. The company is determined to further exploit the asset to the benefit of all stakeholders in the next few years.
“Next (this) year should therefore provide key catalysts for value appreciation for shareholders as we move forward in building a leading Africa-focused exploration and production business,” Akinyanmi added.
LEKOIL’s 2018 financial results showed that it had lost significant ground in terms of profit, compared to 2017 when the young company’s profit stood tall at $6.5 million. Profitability in last year was not possible because of the immense investment that was undertaken within the year, as is common in the oil and gas industry.
“We also continue to advance towards- the start of the appraisal drilling programme on Ogo in OPL 310. We will work with our joint-venture partner, Optimum to negotiate agreements that will allow us to make progress on the block, after securing all relevant regulatory extensions and approvals,” he said.
LEKOIL is an Africa focused oil and gas exploration and production company with interests in Nigeria and Namibia.
The firm was founded in 2010 by a group of leading professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.