In what can best be described as a giant move, Green Energy International Limited (GEIL), has sealed a deal of $350 million with some unnamed international firms. The operator of Otakikpo Marginal Field in Oil Mining Lease 11, Rivers State, concluded the deal after signing a Memorandum of Understanding (MoU) with the companies.
While the MoU was signed for the second phase development of the Otakikpo oil field, it is pertinent to note that an oil services giant, a London-based international bank, a prominent crude oil off-taker, and an EPC contractor were all part of the deal.
How the deal will be utilised: The deal is poised to position the Otakikpo field as major crude processing and exporting hub in the eastern Niger Delta. More so, the indigenous oil company stated that what aided the deal was the company’s commitment to making other commercially-stranded marginal fields in the area functional again.
While the second phase development involved the drilling of additional wells at Otakikpo Marginal Fields, the newly-signed MoU is expected to boost the field’s production from the present 6,000 barrels of crude oil per day to 20,000 barrels of crude per day.
Green Energy also made known that the development would lead to the expansion of the processing facilities from 12,000bpd to 50,000bpd to adequately handle production from the other fields.
More so, 1.3 million barrels onshore terminal and a 20km export pipeline and crude oil loading system will also be constructed from the deal, as the company believes that this will enhance efficient export of the expected production.
What you should know about the field: Otakikpo is a marginal field lying in the oil mining lease OML11, located approximately 60km south-east of Port Harcourt in the Rivers State, Nigeria.
The field was developed by its operator, GEIL in collaboration with its technical and financial partner Lekoil Oil and Gas. While GEI takes pride in its 60 percent participating interest in the field, Lekoil holds 40 percent stake.,
OML11 was farmed out to GEIL by the SPDC JV, which comprises the Shell Petroleum Development Company, Total E&P Nigeria, Nigerian Agip Oil Company, and Nigerian National Petroleum Corporation (NNPC).