Lekoil Limited has announced that it is expecting unceasing commercial production from the Otakikpo field in Q4 of 2016.

The company which revealed this in its interim results said it is aiming for a production rate of 10,000 barrels of oil per day from Phase 1 of the Otakikpo field development plan.

According to the Nigeria-focused Lekoil, the company is on the point of starting commercial production from the field and when it starts, it will signify a very important achievement in the group’s journey to become an independent oil and gas exploration and production business, Proactive Investors reports.

The company added that it has some 25,000 barrels of crude oil stored on site and the short-term target is completely on increasing production from Otakikpo, so that the income can later be used for more expansions as well as for the appraisal of the Ogo oil discovery.

“In the current low oil price environment, we have prioritised the allocation of our capital to our production and development assets to generate short-term cash flow and compelling economic returns, focusing on extracting value from the 'stability' zone of our portfolio. This means limited expenditure on exploration assets but maintained optionality for the future. 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 (photo), Lekoil’s chief executive, said.

Anita Fatunji