Business

Lagos To Start Oil Exploration In 2015

The exploration of the Aje Field  Offshore Lagos will  commence  in 2015 as the joint venture partners on the Aje Field have taken the final investment decision on the exploration of the field.

Yinka Folawiyo Petroleum Company Limited took the FID to develop the first phase of the Aje shallow water oil field for $220mwith the aim to produce 10,000 barrels per day of oil from two target wells in the Oil Mining Lease 113 area. A re-entry of Aje-4 will form the first producer, while drilling of Aje-5 is expected to be the second.

Lagos state Commissioner for Energy and Mineral Resources, Mr. Taofiq Tijani said“We believe that this development is good for Nigeria generally because our reserves base has not increased over the years as expected, because the international oil companies are not ready to invest since the Petroleum Industry Bill has not been passed,”

Yinka Folawiyo is the operator with 25 per cent interest in the field. The partners are Vitol, 24.05 per cent; First Hydrocarbons Nigeria Limited, 16.875 per cent; Energy Equity Resources Limited, 16.875 per cent; Panoro Energy ASA, 12.19 per cent; and Jacka Resources Limited, five per cent.

The JV partners had in January 2014 submitted the Field Development Plan for the Aje field to the Department of Petroleum Resources. The FDP was approved in March and is primarily focused on the development of the Cenomanian oil reservoir.

Lagos State had last year established its oil and gas company following the passage of a bill that sought to establish the Ibile Oil and Gas Corporation

 

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