Lekoil courts GE for Nigeria field

LONDON, April 3, 2017 – Exploration and production company Lekoil on Monday announced the signing of an MoU with GE Oil & Gas for investment in the Ogo field development plan.

To be carried out on Nigeria’s oil production licence OPL 310, the Ogo field development programme is estimated to cost USD 1 billion, divided into USD 400 million for oil and USD 600 million for bringing the field’s gas resources on line.

While Lekoil did not disclose the level of GE’s possible funding, it did say the company would be able to “leverage” GE equipment and technical knowhow. Should the appraisal campaign be successful, GE will be entitled to a share of cash flow from the field.

Lekoil is currently in talks on financing for this campaign. The spudding of an appraisal well is tentatively scheduled for late 2017 or early 2018.

“OPL 310 contains the world-class Ogo field discovery and is another exciting asset in the LEKOIL portfolio. We are pleased to announce this MOU with GE Oil & Gas which marks the first step in our aim to fully develop the Ogo field,” Lekoil CEO Lekan Akinyanmi said in a press release.

A 17.14% stakeholder, Lekoil is waiting to receive ministerial consent for taking an additional 22.86% interest in the field. The share was previously held by partner Afren, which was forced into administration in July 2015.

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