Green Energy International Limited, operator of the Otakikpo marginal field in Oil Mining Lease 11 in Rivers State, on Sunday, announced the signing of a $350m Memorandum of Understanding with a consortium of international companies for the development of the marginal field and others in the area.

It said the international companies include an oil services giant, a London-based international bank, a prominent crude oil off-taker and an EPC contractor for the second phase development of the Otakikpo field involving a total package of $350m.

The indigenous oil firm stated that the deal, which would make the Otakikpo field crude processing and exporting hub in the eastern Niger Delta, was conceived to unlock the potential of other commercially-stranded marginal fields in the area.

It stated that the second phase development involved the drilling of additional wells at Otakikpo marginal fields, adding that this would significantly increase the field production from the present 6,000 barrels of crude oil per day to 20,000bpd.

Green Energy said the development would also lead to the expansion of the processing facilities from 12,000bpd to 50,000bpd to adequately handle production from the other fields.

It stated that the project also involved the construction of 1.3million barrels onshore terminal and a 20km export pipeline and crude oil loading system for efficient export of the expected production.

GEIL had earlier secured from the Federal Government the Approval To Construct the onshore terminal and the associated export infrastructure.