Lekoil Otakikpo joint venture executes drilling agreements

Mon, 13th Jul 2020

Oil and gas exploration and production company Lekoil said its Otakikpo joint venture had executed definitive agreements for the next phase of the Otakikpo marginal field development. The Otakikpo joint venture was made up of Green Energy International, the operator of the Otakikpo marginal field, and the technical partner, Lekoil Oil and Gas Investments (LOGL), in which the company had a 90% economic interest. The upstream drilling programme would include phased drilling of up to seven new wells in Otakikpo with project capital expenditures estimated at US$110.0m, of which LOGL was expected to provide funding of US$44m. Drilling of the first two wells, estimated at US$25.0m - US$10m net to LOGL, was expected to increase gross production to approximately 10,000 bopd from the current gross rates of 5,755 bopd. 'The Otakikpo JV has also entered into a field management services agreement with Schlumberger in respect of the overall exploration, appraisal, evaluation, exploitation, development, production and associated activities of the Otakikpo marginal field,' the company said. 'To govern the provision of certain products and services for the upstream development of the Otakikpo marginal field, the Otakikpo JV has also entered into a master services agreement with Schlumberger for the provision of various well drilling and completion products and services to implement the planned upstream drilling programme,' it added. At 8:28am: (LON:LEK) Lekoil share price was +0.4p at 2.8p Story provided by StockMarketWire.com

FTSE 100 Latest