Nigeria secures approval for Phase 2 of Oil Mining Lease project

Nigeria secures approval for Phase 2 of Oil Mining Lease project

Nigeria has received approval from the federal government for the Field Development Plan (FDP) and environmental impact assessment (EIA) for Phase II development of Otakikpo marginal field in Oil Mining Lease OML 11.

Green Energy International (GEIL), the company that received the go ahead signed a Memorandum of Understanding (MoU) with a consortium of international financiers for a package of more than US $350m to take forward the second phase development of Otakikpo. The consortium includes an international bank based in London, a crude oil off-taker and an EPIC contractor.

Also Read:Ghana secures US $100m to develop oil projects

Oil Mining Lease OML 11 project

The Oil Mining Lease OML 11 project involves drilling of seven additional wells and expansion of the crude processing infrastructure. The plan also includes construction of a 1.3 million barrels onshore terminal and a 17km export pipeline to connect the terminal to an offshore loading system.

“The approval for the EIA will allow the company to develop the field in accordance with international best practices to protect the environment and the ecosystem,” said GEIL Drector of corporate affairs Olusegun Ilori.

Olusegun said that the company aims to increase production from 6,000 barrels per day (bpd) to 20,000bpd and added that the company has also secured the approval to construct (APC) for the onshore terminal and the associated export infrastructures.

“This marks a major step forward for us and our partners, to fully develop Otakikpo field, we are happy to see our assets moving forward into full development stage and generate significant cash flow,” said Olusegun.

 

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