Lekoil to go to court over OPL 310

ABUJA, March 27, 2018 – Lekoil said Monday it would apply to the Nigerian Federal High Court to expedite the approval of its acquisition of OPL 310.

Mayfair Assets and Trust, a Lekoil subsidiary, farmed into Afren Investments Oil and Gas’ share in the asset in 2013. After Afren went into administration in 2015, Lekoil submitted a request to acquire an additional 22.86% stake from the company. The move would give Lekoil a participating interest of 40% and an economic interest of 70%, but in two years the deal has not received ministerial approval.

“Despite progressing exploration and appraisal activities on OPL 310 as previously announced, Lekoil has, to date, not received ministerial consent for its acquisition of the additional 22.86 per cent interest in OPL 310 or a satisfactory explanation of why such consent has not been forthcoming,” the company said in a statement. “As a result, the company has taken the decision to apply to the Federal High Court for a declaration that is expected to expedite the consent process, and preserve the unexpired tenure in the licence.”

The block contains the Ogo prospect, which has 2C reserves of 774 million boe. Based on seismic results, the company believes it has the potential to produce 100,000-200,000 bopd, but it anticipates development closer to 2022.

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