Lekoil has announced that it has reached a resolution with Optimum Petroleum Development Company concerning the 22.86 per cent ownership of the OPL 310, a shallow-water offshore block off the coast of Nigeria near Lagos
Lekoil, Africa focused oil and gas exploration and production firm, said it had executed a legally binding agreement with Optimum to progress appraisal and development programme activities at the Ogo discovery, which sits within the block.
Once an extension of the OPL 310 license has been granted and the necessary funding for the programme has been secured, Optimum and Lekoil will be targeting a two-well programme over the next 12-18 months.
They also agreed to drill two additional appraisal-development wells, contingent on the results of the initial two well appraisal campaign and the associated extended well tests to be undertaken.
The company added that plans to move forward with the development of the block come after activity was halted over a dispute as to the legitimate ownership of the block.
Rather than pursue the matter further, both companies agreed to use the 22.86 per cent equity stake in the block as a potential funding and security vehicle for the accelerated development of the block by an industry partner or a third party that elects to farm-in to the block to fund field development.
But while the agreement does not address the recovery of the US$13mn consideration previously paid by Lekoil with respect to the acquisition of the shares of Afren Oil & Gas in 2015, which held the 22.86 per cent stake in OPL310, Lekoil said it was working with Optimum on a resolution.
