LONDON (Alliance News) - Lekoil Ltd on Thursday said oil has started to flow from the Otakikpo project in Nigeria and is being stored in tanks until the offshore pipeline has been completed, after which the field will begin to ramp-up production toward 10,000 barrels of oil each day.
All of the onshore facilities have been commissioned and the offshore pipeline that will transport the oil from the field is about 80% complete. Lekoil did not provide any guidance on when the pipeline is expected to be completed.
On October 17, Lekoil said commercial production from the field, which lies in a swamp on the shoreline of Nigeria, was expected in "the coming weeks".
Its partner, Green Energy International Ltd, is the operator of the field that will be responsible for ensuring Otakikpo reaches its production target.
A second phase of development is planned beyond the 10,000 barrel a day target. The second phase will involve "incremental development" of the rest of the field. Lekoil plans to install a new central processing facility in that second phase and intends to drill seven new wells to begin producing in 2017.
"We're delighted to announce this key milestone from the Otakikpo field. I would like to thank the entire team that has worked so hard on this project, our partners Green Energy, investors, debt financiers, our host communities and our government regulators for their continued support," said Lekoil Chief Executive Lekan Akinyanmi.
Still, Lekoil shares were trading down 7.5% to 24.06 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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