The estimated net recoverable resource to Lekoil is around 232 MMboe. The company is in talks with potential partners for financing of a program on the license that includes an appraisal well, expected to spud by year-end or early in 2018.
Following successful completion of the appraisal phase, and subject to a positive well result and other conditions, GE, via a consortium, and Lekoil, through its funding partners, intend to commit funds toward a full field development.
The estimated cost is $400 million, with a subsequent upstream gas field development priced at around $600 million.
GE would receive a percentage of Lekoil’s future cash flows from Ogo, as well benefiting from supplying its products and technical expertise throughout the life of the project.
Lekoil’s 40% interest in OPL310 will remain intact and will be unaffected by the terms of the MoU.