GOOD NEWS: Move over Niger-Delta, Lagos begins oil production

 – Yinka Folawiyo Petroleum Company Limited (YFP) says it has begun the production of crude oil from its Aje Field in Lagos

– Aje field has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels

Despite the lingering oil crisis in Nigeria, an oil firm, Yinka Folawiyo Petroleum Company Limited (YFP), says it has begun the production of crude oil from its Aje Field located in Block OML 113, offshore Lagos.

According to firm, Aje field has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels.

Speaking through a statement, Bolaji Musa the oil firm’s General Manager said the oil firm is a wholly owned Nigerian company and Operator of OML113. The other partners are: New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited.

“After over 25 years of exploratory, appraisal and developmental activities, YFP has successfully pioneered the opening of the Frontier Benin Embayment. The Aje Field is the first field to record production from this part of Nigeria and is the first production outside of the Niger Delta.

“Commissioning of the Front Puffin FPSO was successfully completed after its arrival in Nigeria on 16th March 2016.

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“We are very proud of and appreciative of the efforts, determination and commitment, of the entire Aje Project team past and present, the constant support from our regulators, the DPR and Ministry of Petroleum and our financiers. We believe this crucial support will spur us on to even greater achievements.

“The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir,” YFP added.

Also quoted in the statement, its chairman Tunde Folawiyo said: “The attainment of this milestone is indeed a laudable achievement not just for YFP but for the Nigerian oil and gas industry as a whole and indeed Lagos State which can now be addressed as an oil producing state. Recording this achievement in the present global oil climate together with the peculiar challenges of the field is clearly no mean feat.”

Aje is an offshore field located in OML 113 in the Dahomey Basin in the Southwest. The field is situated in water depths ranging from 100 to 1,000 metres, about 24 km from the coast.

Meanwhile, Femi Otedola, Nigerian business mogul, has lost more than $400 million in the past nine weeks. According to Vanguard, Otedola’s loss of his personal fortune came as a result of a 43.5% shed off in stock price of Forte Oil, the Nigerian-listed energy behemoth he controls.

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