Nigerian oil and gas exploration company, LEKOIL, has provided operational and trading update for the Otakikpo Marginal Field, which is the company’s sole producing asset.

Below are the updates on the Otakikpo Marginal Field in OML 11 as provided on behalf of the Otakikpo Joint Venture, made up of Green Energy International Limited who is the operator of the Marginal field, and the Technical Partner, LEKOIL Oil and Gas Investments Limited, a member of the LEKOIL Limited group:

• “Average production for the five months starting 1 July 2020, was 4,519 bopd gross with 1,807 bopd net to LOGL (H1 2020: 5,676 bopd gross with 2,271 bopd net to LOGL)
• For the full year 2020, average production levels are expected to be 5,150 bopd gross with 2,060 bopd net to LOGL.
• For the five months starting 1 July 2020, average production was 20% lower than for the average over the first six months of the year, mainly due to unscheduled deferment, including bad weather conditions and the replacement of damaged PLEM hoses, as well as due to Organisation of the Petroleum Exporting Countries (“OPEC”) production cuts imposed by the Department of Petroleum Resources (“DPR”), which is the Petroleum Regulatory Agency of the Federal Republic of Nigeria.
• Up to 30 November 2020, LOGL recorded net revenues of US$26.9 million, which represents LOGL’s share of crude oil sales from the Otakikpo operation during the year to date (“equity crude”).
• LOGL lifted 778,600 barrels in equity crude up to 30 November 2020 in six liftings through its nominated offtaker, Shell Western Supply and Trading Limited (“SWST”) (a member of the Royal Dutch Shell plc group of companies);
• The seventh and next lifting is currently ongoing with net cash proceeds of US$4.0 million expected to be received shortly by the Company.
• The Company remains in discussions with offtake financiers to raise, according to its participating interest, its own portion of the required funding (US$10.0 million net to LOGL) for the next two wells on the field.”