Lagos state is set to export its first crude oil lifted from the Aje field, offshore Lagos, Nigeria, by the end of August following the commissioning of a production and storage vessel for the crude.
It would be recalled that Governor Akinwunmi Ambode, had in May declared that Lagos has officially joined the League of Oil Producing States in Nigeria following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited (YFP) in the state.
Panoro Energy, the London based independent E&P Company in partnership with YFP on the Aje Field development, made the announcement in an operational update on its website but stated, however, that the targeted stabilised production rates have not yet been achieved, due to mechanical issues and Nigerian regulatory approvals.
And that until the outstanding issues are resolved, which could take until the end of Q4 2016, production shall be maintained at a restricted daily rate of approximately 7,000-8,000 barrels of oil.
The company states that it expect the first crude oil lifting from the Front Puffin FPSO to take place at the end of August, with John Hamilton, CEO of Panoro adding that:
“In the meantime we continue to be encouraged by the performance of the reservoir to date.
“Laboratory assays have been delivered on Aje crude oil which show it to be as expected a high quality grade of approximately 42 degree API.
“We are very pleased with the reservoir performance at Aje and are planning the next steps to realize its full potential.”
The company disclosed that several international oil companies and trading houses have also expressed interest in purchasing Aje field crude.
The Group Managing Director of YFP, Mr. Tunde Folawiyo during the official announcement, told governor Ambode that the company has committed about $400m to achieve the feat adding that the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility to increase to 25,000 to 50,000 barrels per day in the nearest future.