Lagos can now be listed among the oil producing states in the country, as the Aje field located in Oil Mining Lease 113 has commenced its first oil production, twenty years after it was discovered.
Aje is an offshore field located in OML 113 in the Dahomey Basin in the Southwest. The field is situated in water depths ranging from 100 to 1,000 metres, about 24 km from the coast.
It contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.
Yinka Folawiyo Petroleum Company Limited, a wholly-owned indigenous firm and operator of the OML 113 offshore Lagos, on Tuesday announced the commencement of crude oil production from the field. Other partners are New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited.
The oil firm said oil produced from the Aje field will be stored on the Front Puffin, which has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels.
YFP said after over 25 years of exploratory, appraisal and developmental activities, it had successfully pioneered the opening of the Frontier Benin Embayment, describing the Aje field as the first to record production from this part of Nigeria and the first production outside of the Niger Delta.
It said the inauguration of the Front Puffin Floating Production, Storage and Offloading vessel was successfully completed after its arrival in Nigeria on March 16, 2016.
YFP Chairman, Mr. Tunde Folawiyo, in a statement said,
“The attainment of this milestone is indeed a laudable achievement not just for the YFP, but for the Nigerian oil and gas industry as a whole and indeed Lagos State, which can now be addressed as an oil producing state.”
Mr. Folawiyo, said recording the achievement in the present global oil climate, together with the peculiar challenges of the field, was clearly no mean feat.
Proud and appreciative of the efforts, determination and commitment of the entire Aje project team, past and present; the constant support from regulators, the DPR and Ministry of Petroleum and financiers, Folawiyo believes this crucial support will spur them on to even greater achievements.