Lekoil, GE draw up accord on Ogo project offshore Nigeria
Lekoil has signed a memorandum of understanding with GE Oil & Gas concerning development of the Ogo field in OPL310 offshore Nigeria.
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.