BUSINESS Lagos begins first crude oil export August ICT can …As IOCs, traders place order for cargoes boost Nigeria’s revenue – Danbatta
All is now set for the first crude oil lifting for export from the Aje field, offshore Lagos, Nigeria, by the end of August following the commissioning of a production and storage vessel for the crude.
The news follows the declaration by governor Akinwunmi Ambode in May, 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.
The company stated, however, that the targeted stabilised production rates have not yet been achieved, due to mechanical issues and Nigerian regulatory approvals.
“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 7,0008,000 barrels of oil,” the company stated.
“We expect the first crude oil lifting from the Front Puffin FPSO to take place at the end of August,” it said adding “In the meantime we continue to be encouraged by the performance of the reservoir to date.”
The company said several international oil companies and trading houses have expressed interest in purchasing Aje crude.
“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,” the company’s update noted.
John Hamilton, CEO of Panoro said,“We are very pleased with the reservoir performance at Aje and are planning the next steps to realize its full potential.”
Group Managing Director of YFP, Mr. Tunde Folawiyo had told governor Ambode at the official announcement, that the company 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. FLIGHT
Front Puffin crude oil vessel ARIK AIR