As part of the activities towards the development of the field, LEKOIL
will leverage GE Oil & Gas equipment and technical expertise. LEKOIL is
currently in discussions with other potential partners for the financing of the
OPL310 appraisal programme, which includes an appraisal well, which is expected
to spud by year-end 2017 or in early 2018.
A press statement made available to Harboursandport quoted the Chief
Executive Officer, CEO of LEKOIL, Lekan
Akinyanmi to have said, “OPL 310 contains the
world-class Ogo field discovery and is another exciting asset in the LEKOIL
portfolio. We are pleased to announce this MOU with GE Oil & Gas which
marks the first step in our aim to fully develop the Ogo field.
“The agreement brings a world-class resource to OPL310 and significantly
reduces LEKOIL’s cost of capital to bring the field into production.
“As we have previously announced, we are still in the process of
securing ministerial consent for the remainder of the OPL310 acquisition and we
remain confident that we will receive all the necessary approvals prior to the
start of the appraisal programme.”
Following the successful completion of the appraisal phase, and subject
to the fulfilment of a number of conditions including a positive well result,
GE Oil & Gas, through a consortium SPV, and LEKOIL through its funding
partners, intend to invest funds towards the full field development capital of
the project. LEKOIL estimates this cost to be US$400m for full field oil
development and US$600m for subsequent upstream gas field development.
GE Oil & Gas is expected to receive a percentage of LEKOIL’s future
cash flows from the Ogo Field, as well as the ability to supply its products
and provide technical expertise throughout the life of the project.
LEKOIL’s 40% participating interest in OPL310 will remain intact and
unaffected by the terms of the MOU.
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