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Tag: Lekoil

  • Lekoil praises Tinubu on new oil export terminal

    Lekoil praises Tinubu on new oil export terminal

    Lekoil Nigeria Limited has attributed the success of the new oil export terminal to the favourable environment provided by the pro-business policies of President Bola Tinubu’s administration.

    Chief Executive Officer, Lekoil Nigeria Limited, Lekan Akinyanmi said the commissioning of the Otakikpo Onshore Crude Oil Export Terminal, through which Lekoil evacuates crude oil from the Otakikpo field, marked a defining chapter in the company’s journey as a leading independent oil and gas company in Nigeria.

    The strategic export channel was commissioned by President Bola Tinubu, represented by Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.

    According to him, the commissioning of the strategic export channel was in line with ongoing reforms to expand Nigeria’s production capacity towards Nigeria’s economic development.

    “The Otakikpo Onshore Crude Oil Export Terminal is not just infrastructure; it is a symbol of progress, credibility, and the determination of indigenous producers to deliver value on a global stage,” Akinyanmi said.

    Read Also: UPDATED: Council of state backs Tinubu’s nominee, Prof. Amupitan as INEC chairman

    He also commended the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for creating an enabling environment.

    He said the commissioning of the terminal represented a validation of the company’s commitment to consistency and building lasting value.

    “The commissioning of the Otakikpo Onshore Crude Oil Export Terminal is a proud moment for Lekoil. It validates our commitment to building lasting value as an indigenous producer, delivering our crude to the market reliably while supporting our host communities and Nigeria’s broader energy ambitions. This milestone is a clear indication that Lekoil represents resilience, responsibility, and results,” Akinyanmi said.

    He pointed out that Lekoil, along with Green Energy International Limited, its joint venture partner on the Otakikpo field (PML 11), has consistently demonstrated that indigenous oil and gas companies can operate at world-class standards, unlock resources, advance community development, and contribute to national production growth.

    “With the commissioning of the terminal, Lekoil can now maximise the potential of Otakikpo, widely regarded as a prolific area for oil and gas nestled in the southeastern part of the Niger Delta basin, and ensure secure, efficient evacuation and reinforce its reputation as a reliable supplier of Nigerian crude.

    “This achievement underscores Lekoil’s place as a trusted, responsible operator with a long-term commitment to Nigeria’s energy security and economic growth and its vision: to be the world’s leading exploration and production company focused on Africa. We celebrate this historic commissioning as a major step in Lekoil’s growth story, one that confirms our standing as a bonafide independent producer with the capacity, the partnerships, and the will to deliver,” Akinyanmi said.

  • LEKOIL eyes 20,000bpd with investments

    Indigenous oil and gas firm, LEKOIL, yesterday said with its strategic investments this year, it hopes to ramp up production to 20,000 barrels per day (bpd) by adding  15,000bpd.

    Its CEO, Olalekan Akinyanmi, said the priority of the oil major this year is to increase oil production.

    “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,” he said in a note that accompanied its 2018 annual report which was released in late June.

    At the Otakikpo field which is sited in a coastal swamp location in oil mining lease (OML) 11, production levels averaged approximately gross 5,345 bpd in 2018 even though LEKOIL only started drilling in the first quarter (Q1) of 2017. The company is determined to further exploit the asset to the benefit of all stakeholders in the next few years.

    “Next (this) 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 added.

    LEKOIL’s 2018 financial results showed that it had lost significant ground in terms of profit, compared to 2017 when the young company’s profit stood tall at $6.5 million. Profitability in last year was not possible because of the immense investment that was undertaken within the year, as is common in the oil and gas industry.

    “We also continue to advance towards- the start of the appraisal drilling programme 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,” he said.

    LEKOIL is an Africa focused oil and gas exploration and production company with interests in Nigeria and Namibia.

    The firm was founded in 2010 by a group of leading professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.

     

  • OPL 310: ‘Lekoil needs minister’s consent’

    A Federal High Court sitting in Lagos, and presided by Justice Sule Hassan, has ruled that Lekoil’s acquisition of an interest in OPL 310 still requires consent from the Minister of Petroleum Resources.

    Justice Hassan said the Executive Order issued by Acting President, Prof. Yemi Osinbajo in 2017, which should have deemed the consent to have been granted, could not supersede the powers of the Minister of Petroleum Resources to grant such consent.  More specifically, the Judge disagreed that the consent could be deemed granted and obtained in default which Lekoil believes is contrary to the provisions of the Executive Order.  The Judge further said the Executive Order was signed in 2017, while Lekoil’s application for consent to acquire the 22.86 per cent participating interest in the block was made in 2016 and so could not be applied retroactively.

    Justice Hassan further ruled that the Sale and Purchase Agreement executed by and amongst Lekoil 310 Limited, Afren Nigeria Holdings and the administrators for the purchase of Afren Investments Oil and Gas Nigeria Limited (AIOGL) was inchoate based on the fact that Consent is pending.

    Based on the judgement, OPL 310 interest is still held by the seller, Afren Investments Oil and Gas Nigeria Limited. Lekoil still holds a 17.14 per cent participating interest in the block, however, which received ministerial consent back in 2017.

    Commenting on the development, Chief Executive Officer, Lekoil, Lekan Akinyanmi, said: “The company is yet to receive the judgement in writing, and believes it has strong grounds to appeal against this judgment by the Federal High Court; intends to file a notice of appeal and a stay of execution of this judgement with the court of Appeal within a week. The company will take all necessary action to preserve its right to the 23 per cent interest in OPL 310.”

     

    The OPL 310 licence originally ended in February, but Lekoil has applied for the licence to be extended due to regulatory issues. The Department of Petroleum Resources (DPR) has recommended that the extension be granted, although it is still awaiting Presidential approval.

    “The company believes that the OPL 310 licence is still in good standing given that the extension is in process and there has been no communication from the regulators to indicate that an extension will not be granted,” Akinyanmi said.

     

     

     

     

  • LEKOIL sues Petroleum Ministry over OPL 310

    LEKOIL Limited, an oil exploration and production company, has commenced legal proceedings against the Ministry of Petroleum Resources over government’s failure to grant consent to its (LEKOIL’ s) investment in  Oil Prospecting  Lease (OPL) 310, offshore Nigeria, following acquisition of interests previously held by Afren Plc in the oil block.

    According to the plaintiff, “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.  “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”.

    LEKOIL said: “On 1 February 2013, Mayfair Assets and Trust Limited, a subsidiary of LEKOIL, farmed into Afren Investments Oil and Gas (Nigeria) Limited’s (AIOGNL) interest in OPL 310 for a 17.14 per cent participating interest and 30 per cent economic interest, subject to Ministerial Consent from Nigeria’s Minister of Petroleum Resources.  Ministerial Consent was granted for the interest on 9 June 2017.

    “On 31 July 2015, Afrenplc, the parent company of Afren Oil & Gas that held interests in the OPL 310 licence, was put into administration and its assets put up for sale.  On 1 December 2015, LEKOIL announced an agreement with the administrator of Afren and Afren Nigeria Holding Limited to acquire the shares of AIOGNL, which held a 22.86 per cent participating interest in OPL 310.  This interest was also subject to Ministerial Consent from the Minister of Petroleum Resources.  The acquisition meant that LEKOIL would hold a consolidated participating interest of 40 per cent and an economic interest of 70 per cent in OPL310 and would become the technical and financial partner of Optimum Petroleum Development Company, the operator and local partner in OPL310, which retains a 60 per cent participating interest.”

    The plaintiff further affirmed that an application for the transfer of the 22.86 per cent interest was duly made by Afren Nigeria in January 2016.  As the transaction was not undertaken on the basis of an Assigned Interest in the oil block, approval by Optimum was not required under the JOA between Optimum and Afren.  In March 2016, LEKOIL was notified by the Ministry of Petroleum Resources that the necessary due diligence exercise would be conducted that month.  The due diligence exercise did not take place and has not been rescheduled by the Department of Petroleum Resources since then.

    OPL 310 is an offshore license, which includes the potentially large Ogo oil discovery, which is located in shallow water offshore Lagos.

    LEKOIL said: ‘The delay in regulatory consent for LEKOIL on the block stands in the way of the company’s plans for the development of a work programme for the Ogo field (the only discovery on the block).

    On 1 December 2015, the company announced an agreement with the administrator of Afren and Afren Nigeria Holding Limited to acquire the shares of AIOGNL, which held a 22.86 per cent participating interest in OPL 310 for a total consideration of US$13 million.  Post-acquisition, the company holds a 40 per cent working interest and 70 per cent economic interest in the block, with AIOGL’s 22.86 per cent working interest and 40 per cent economic interest subject to Ministerial consent.

  • Firm raises $100m asset for growth

    An indigenous oil firm, Lekoil said it has raised $100 million to fund the completion of drilling and testing of the Ogo-1 well and sidetrack, as well as for the future development of its OML 113 license in Nigeria, the Managing Director, Olalekan Akinyanmi, has said.

    Akinyanmi said the Ogo-1 sidetrack well, which reached its total measured depth of 17,987 feet on October 6, has encountered hydrocarbon intervals in the same Turonian, Cenomanian and Albian reservoirs that were successfully drilled and logged at the Ogo-1 well during the summer, adding that results from the sidetrack so far indicate that a 280-foot vertical thickness gross hydrocarbon interval exists within the well. The partners in the license – which include Afren and Optimum Petroleum Development – believe that wireline data and testing of the sidetrack is necessary to define the extent of the hydrocarbon intervals.

    The nearby OML 113 licence – in which Lekoil agreed to buy a 6.5-per cent participating interest in September – contains the Aje gas and condensate field, which is located about 15 miles offshore Nigeria in water depths of around 3,000 feet. The field is estimated to have un-risked 2C contingent resources of 25.3 million barrels of oil equivalent attributable to it.

    “This equity raise reflects Lekoil’s success in implementing the strategy, set out at the time of our IPO in May this year, to build a business focused firm, with diversified interests in terms of exploration, appraisal and near term production,” he said.

  • Lekoil to acquire 6.5% interest in Aje field

    Lekoil to acquire 6.5% interest in Aje field

    Lekoil 113, a subsidiary of Lekoil Nigeria Limited, an indigenous independent exploration and production company has agreed to acquire a 6.502 per cent participating interest in Oil Mining Lease (OML) 113 from Pan Petroleum Aje Limited, a subsidiary of Panoro Energy ASA.

    The asset lies within the Benin Basin, about 24 km from the coast of Nigeria, close to the route of the West Africa Gas Pipeline and 64 km from Lagos. The licence covers an area of 960 km2 with water depths ranging from 100 to 1,500 metres. It is primarily a gas and gas condensate discovery, but also contains a thin oil reserves. The 6.502 per cent interest is being considered for US$30 million.

    A statement from Lekoil stated that OML113 is located offshore Nigeria in the Benin Embayment along the West African Transform Margin adjacent to Oil Prospecting Lease (OPL) 310, in which Mayfair Assets and Trusts Limited, a subsidiary of Lekoil Nigeria, has an ultimate 30 per cent economic interest.

    The OML113 licence area contains the Aje oil and gas field, for which AGR TRACS International Limited in its recently updated Competent Persons Report (CPR), estimated Contingent Resources of 198.7 million barrels of oil equivalent (mmboe) or proven reserves.

    When the deal is finally sealed, Lekoil’s share of the 198.7 mmboe according to a statement, will be approximately 25.3 mmboe. About 50 per cent of the reserves in the Aje field are liquid hydrocarbons, comprising gas, gas liquids and condensate as well as a significant oil in one of the reservoirs.

    On 17 June 2013, Lekoil 113 entered into a binding conditional Sale and Purchase Agreement (SPA) with PPAL, Pan-Petroleum Nigeria Holding and Pan-Petroleum (Holding) Cyprus Limited to acquire a 6.502 per cent participating interest in OML113 representing cost bearing participation and revenue participation that range from 16.255 per cent to 12.1913 per cent.for activities in the Aje Field depending on the extent of cost recovery.