Green Energy International Limited (GEIL) has signed  a memorandum of understanding ( MoU) with a consortium of international firms valued at $350million for the second phase development of Otakikpo Marginal Field  in Oil Mining Lease (OML) 11, Rivers State.

The consortium include London based International Bank, prominent crude oil off-taker and EPIC contractor.

GEIL Chairman,  Prof  Anthony Adegbulugbe described the deal as a major milestone in the oil and gas industry, particularly for the marginal field, coming on the heels of a successful commencement of production in 2017 and the conclusion of the interpretation of the 3 D seismic data acquired by the firm to maximise the field opportunities.

GEIL Corporate Affairs Director, Olusegun Ilori, in a statement noted that the deal which  will make the Otakikpo field a crude processing and exporting hub in the Eastern Niger Delta, is conceived to unlock the potential of other commercially-stranded marginal fields in the area.

The second phase development, according to the statement, involves the drilling of additional wells at Marginal Field, which will significantly increase production from 6000 barrels per day (bpd) to 20,000 bpd. The processing facilities will also be expanded from 12,000 to 50,000 bpd to adequately handle production from the other fields.

The project also involves the construction of 1.3 million barrels onshore terminal and a 20-kilometre export pipeline and crude oil loading system for efficient export of the expected production.

GEIL has already secured the approval to construct (APC) for the onshore terminal and the associated export infrastructures.