Agreements Reached on Drilling of Seven More Nigerian Oil Wells

Agreements Reached on Drilling of Seven More Nigerian Oil Wells

Agreements Reached on Drilling of Seven More Nigerian Oil Wells
 
Abuja, 13/07/2020
 
Indigenous oil company, Lekoil, has signed service agreements with Schlumberger, a leading drilling, exploration and production firm in the oil and gas industry. A joint venture between the two companies planned phased drilling of up to seven new wells, at a cost of $110 million on the Otakikpo oil field.
 
Discovered in 1980, Otakikpo is a marginal field lying in the oil mining lease OML11, located approximately 60km south-east of Port Harcourt in Rivers State, Niger Delta area of Nigeria.
 
Confirming the development, CEO of Lekoil, Lekan Akinyanmi said “We are pleased to be working with Schlumberger, a world class project execution service provider, and we are committed to advancing this exciting and transformative project that is aimed at increasing the value and cash generation abilities of the field.”
 
According to the terms of the agreements, Schlumberger will act as project execution manager, providing oilfield services and project management. The service company will receive fees for the secondment of its personnel and a project implementation fee, Oil and Gas Goodness learnt.
 
Of recent, the partners have benefited from costs falling, with capital expenditure down from the initial $170 million to this current $110 million. 
 
Upon commencement of drilling, the first two wells should almost double production, from 5,755 barrels per day to around 10,000 bpd. These will cost $25mn. 
 
Adedayo Osho reporting for Oil and Gas Goodness