Page 13 - AfrOil Week 26

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Venture and the operators and owners of other marginal elds participating in the Project.
Capital expenditure to be incurred by
the Otakikpo Joint Venture is expected to
be approximately US$170mn covering new wells and processing infrastructure, of which LEKOIL is expected to fund US$68mn. e anticipated costs consist of debt repayment to nancing parties, including the major
oil company, in addition to a project implementation fee paid to Schlumberger.
Under the terms of the MOU, the major oil company will provide funding to the Otakikpo Joint Venture alongside the other funding partners, subject to due diligence, project economics, entry into de nitive documentation and nal investment decision. e Otakikpo Joint Venture will enter into an exclusive o ake agreement with the major oil company for the sale of crude produced pursuant to this project. Schlumberger
will act as technical and project execution partner to provide oil eld services and project management services to assist in ramping up production and long-term eld management. e Consortium will also form multidisciplinary project management teams from LEKOIL and GEIL.
Due diligence will be undertaken and the nancial terms and cost of capital will be nalised following nal investment decision. e FID is subject to the satisfaction of customary conditions precedents, including the credit committee approval of nancing parties and the execution of de nitive project agreements. Site mobilisations are tentatively scheduled for late Q3 2019.
Lekan Akinyanmi, CEO of LEKOIL said, “ is MOU is a signi cant milestone for LEKOIL and the Otakikpo JV. It secures
the necessary funding, subject to the various conditions being satis ed, to drill additional wells and unlock further value
at Otakikpo. We are pleased to be working with Schlumberger (who brings world class implementation) and other members of
the consortium. We look forward to the transformation of operations infrastructure and an opportunity to earning revenue along the value chain”.
lEKoIl, july 1, 2019
Allegations fly around OML 25
Communities around OML 25 have accused Rivers State o cials of taking a US$5mn bribe from SPDC during mediation, e Guardian reported. A statement from 11 royal o cials, from the communities of Belema, O oin- Ama and Ngeje said the payment was for the
state government to do SPDC’s bidding, the newspaper said.
In particular, the payment was said by the communities to have been paid to the secretary to the state government, Tammy Danagogo, to “allegedly undermine due process and forcefully re-open the oil well”.
A statement from the communities said an MoU signed with Governor Nyesom Wike had excluded the real owners of land around the facility.
Danagogo told e Guardian that the allegation was “cheap blackmail”. e o cial said he had authority to hold talks with communities and oil companies. He also said he had previous opportunities to take bribes and had not opted to do such.
BW Offshore signs FPSO extension
BW O shore has signed an extension agreement for Abo FPSO with Nigerian Agip Exploration, a subsidiary of Eni, until end Q4 2019, with options until Q4 2020.
bW offsHoRE, june 30, 2019
Tanker accident leads to multiple deaths
A tanker skidded o a road in Nigeria’s
Benue State on July 1. e driver was trying
to avoid potholes, Vanguard reported a local witness as saying. A er the truck fell, people from the local village were scooping the
PMS up. During this, the truck exploded, killing around 30 people, with more than 60 receiving serious burns, the newspaper quoted him as saying.
Buhari ousts Kachikwu from NNPC board
Nigerian President Muhammadu Buhari has appointed Dr. omas M.A. John as Acting Alternate Chairman of the NNPC Governing Board. Dr. John, a former Group Managing Director of the NNPC, is before the appointment, a member of the NNPC Governing Board.
He will hold the position of the Acting Alternate Chairman of the Governing Board until a new Minister of Petroleum Resources or Minister of State for Petroleum Resources is appointed to assume the Chairmanship or Alternate Chairmanship position, respectively in line with Sections 1(3) and 2(1) of the NNPC Act. e new appointment takes e ect,
immediately.
nnPC, june 25, 2019
NNPC continues gas supply lead
Nigerian National Petroleum Corporation (NNPC) has maintained its lead as the largest supplier of gas to the nation’s power sector, the NNPC Group Managing Director, Maikanti Baru, has declared.
Baru, who made this disclosure during the inauguration, today, of a compendium produced by the Corporate Services Directorate of the NNPC in Abuja, attributed the feat to the e ective management strategy adopted by the current leadership of the corporation.
A release by the corporation’s Group General Manager, Group Public A airs Division, Ndu Ughamadu, said the GMD stated that NNPC was on the part of sustainable growth with a number of critical projects that would impact the Industry value chain.
He expressed satisfaction at the level
of achievements recorded through the 12 Business Focus Areas (BUFA), a strategy guide adopted by NNPC Management
under his purview, noting that the expected results of today’s e ort would surpass current milestones.
“NPDC production has grown in leaps and bounds; NNPC is now the largest gas supplier to the power sector and steady progress is being made on frontier exploration with the spud-in of Kolmani River-II Well.”.
e GMD said with the taming of security challenges and the commencement of the rehabilitation of the re neries and pipeline depots across the country, the corporation was on the right track to continue to add value to the national economy.
“Security challenges that had hampered exploration and production activities have been tamed; new business models have been developed across NNPC businesses, leading
Week 26 02•July•2019
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