Lekoil reports first FY revenue after commercial production at Otakikpo field

Offshore Oil RigLekoil expects to ramp up production from Otakikpo to 20,000bpd by 2020. (Image source: Selbe Lynn/Flickr)Africa focussed Lekoil Limited reported a full-year revenue for the first time after it achieved commercial crude oil production and sales in 2017 from its oilfield in Nigeria

The company reported a profit of US$6.5mn for the year ended 31 December 2017 compared with a loss of US$15.8mn last year. Revenue was US$30.8mn.

Lekoil said it expects to increase production volumes at its Otakikpo oilfield to 20,000bpd by 2020, from an average of 5,547bpd from May 2017 to May 2018.

Lekoil has a 40 per cent interest in Otakikpo, which is located in the oil mining lease OML11, about 60km south-east of Port Harcourt in the Rivers State, Nigeria. Green Energy International, the operator of the oilfield, holds the remaining 60 per cent.

"To our great satisfaction, 2017 saw Lekoil's first commercial production and first crude oil sales. These are perhaps the most important milestones in the history of the Company, and represent the fruits of efforts that have been ongoing since Lekoil's inception in 2010," Samuel Adegboyega, Lekoil's chairman, said.

"Our priority for 2018 is to continue to grow production volumes and profitability at Otakikpo. In tandem, we will aim to progress the appraisal and development of our Ogo discovery in OPL 310. Once we receive the second Ministerial Consent, we plan to finalise funding plans for an appraisal drilling programme. The programme will comprise two wells which will include flow testing. Our aim is to secure enough information to enable the partners to take a Final Investment Decision in 2019 and then to proceed with development in partnership with GE Oil & Gas," Lekan Akinyanmi, Lekoil's CEO, said.

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