(Ecofin Agency) - Africa-focused Lekoil is expected to begin commercial oil production from Otakikpo marginal field, located in Oil Mining Lease (OML) 11 in Rivers State this month, following the completion of the Otakikpo-003 well.

After the successful return of the Otakikpo-002 well, first oil from Otakikpo flowed to surface in September last year.The oil and gas exploration company last month said that with four production strings now set for production, it is targeting production of 10,000 barrels of oil per day (bopd) by year-end.Afterwards, it will continue to Phase two of the Otakikpo field development plan which is to bring production to a target of 20,000 bopd, depending on necessary approvals by the Department of Petroleum Resources (DPR) and Joint Venture Partners.

“Our principal focus for the next twelve months is on delivering our phase 1 production target for Otakikpo, which we expect to hit by year end, and subsequently use that cash flow and strategic partnerships to grow production and develop the other assets in the portfolio,” Lekan Akinyanmi, Lekoil's CEO, told Daily Trust.

Lekoil has a 40% participating interest as well as an 88% economic interest in the Otakikpo marginal field.

Anita Fatunji