Lekoil Ltd has announced that its wholly owned subsidiary, Mayfair Assets and Trust Limited, has received ministerial consent for its farm-in of a 17.14% economic interest in the OPL 310 licence in Nigeria.

Let’s be reminded that in February 2013, Mayfair farmed into Afren Oil & Gas’ interest in OPL 310 for a 17.14% participating interest and 30% economic interest. In July 2015, Afren Plc, the parent company of Afren Oil & Gas, was put into administration and its assets were put up for sale. In order to protect its interests in the licence, Lekoil agreed to acquire Afren’s entire 22.86% participating interest in OPL 310 offshore Nigeria for a cash consideration of $13 million. The company afterwards applied for ministerial consent for this interest.

Lekoil said it is working together with regulatory agencies to clarify and revise the conditions specified in the consent letter in line with Nigerian law and further announcements will be made. Located in the Upper Cretaceous fairway that runs along the West African Transform Margin, the OPL 310’s main prospects besides the Ogo discovery are in water depths from 100 to 800 meters and are not far from the West Africa Gas Pipeline.

According to Optimum Petroleum, the operator of the licence, drilling of two appraisal wells and two exploration wells is estimated to begin in early 2017, Offshore Energy Today reports.

“Optimum Petroleum is pleased to announce progress on the resolution of the issues in relation to OPL 310 development. The forthcoming appraisal and development work on OPL 310 is expected to commence in 2017 and should contribute to the production of oil and gas reserves supporting the industrial development and energy needs of Lagos State and the petroleum industry of the Federal Republic of Nigeria,” Yusuf K.J. N'Jie, Optimum Petroleum Managing Director/CEO, said.

Anita Fatunji