The Aje gas and condensate field lies in Oil Mining Lease 113 (OML 113) in the Benin Basin, approximately 24 km offshore of western Nigeria. The water depth in the region is 3,000ft.
Yinka Folawiyo Petroleum (YFP) is the operator of OML 113 with a 60 percent interest.
The remaining 40 percent is owned by a joint venture comprising Chevron Nigeria Deepwater, Vitol Exploration Nigeria, Panoro Energy (6.502%), Energy Equity Resources and Jacka Resources.
Chevron was appointed as the technical adviser to the operator for the project, and was also assigned the responsibility to prepare a development plan for the field.
Providence Resources Oil and Gas earlier held a 2.667 percent interest in the OML 113.
It was sold to Jacka in December 2011. During the same period, Chevron announced its plans to sell its interest to Energy Equity Resources.
The field came on stream in May 2016 and is expected to achieve a plateau production ranging between 50,000 and 80,000 barrels of oil equivalent (boe) a day.
Current Production data
The Aje field currently produces c. 3,500 barrels of oil per day (bopd), according to Businessday sources familiar with the matter.
This is expected to increase to 10,000 bopd by the first quarter of 2017 and 15,000 bopd by early Q2 2017.
The coming on stream of the oil field is a big boost to the Lagos State government, which says “it expects an increase in Federal allocations in 2017 through 13 percent derivation from oil and gas.”
Oil and gas sources tell Businessday that derivation on the field should begin to hit Lagos state coffers as early as this month (December).
PATRICK ATUANYA
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
