Oil Firm to Boost National oil Output by 20,000bpd

• Oil Firm to Boost National oil Output by 20,000bpd

LEKOIl, an indigenous oil and gas firm, has said its investment in the oil and gas sector could add additional 15,000 to 20,000 barrels per day to the national oil output in 2019.

Olalekan Akinyanmi, the company’s CEO, said: “The priority for 2019 is to grow production volumes at Otakikpo through Phase Two development (subject to funding) to reach gross volumes of 15,000 to 20,000 bpd. The first step has already occurred, with 3D seismic data acquisition and interpretation now completed.”

The Otakikpo field was averaging 5,345 barrels per day in 2018 despite the company starting in the first quarter of 2017. Therefore, the management of the company is determined to increase production to the benefit of all stakeholders.

“The next year should, therefore, provide key catalysts for value appreciation for shareholders as we move forward in building a leading Africa-focused exploration and production business,” Akinyanmi said in the note.

LEKOIL profitability dropped from $6.5 million in 2017 to zero in 2018 due to a number of investments undertook by the company to boost production and expand revenue.

“We also continue to advance towards- the start of the appraisal drilling program on Ogo in OPL 310. We will work with our joint-venture partner, Optimum to negotiate agreements that will allow us to make progress on the block, after securing all relevant regulatory extensions and approvals,” Mr. Akinyanmi added.