This is coming following a declaration by Governor Akinwunmi Ambode that Lagos had officially joined the oil producing states in Nigeria.
This followed the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited (YFP). Daily Trust reports that the independent E&P Company in partnership with YFP on the Aje Field which made the announcement said the targeted stabilised production rates have not yet been achieved yet due to mechanical issues and Nigerian regulatory approvals.
“Until the outstanding issues are resolved, which could take until the end of Q4 2016, production shall be maintained at a restricted daily rate of approximately 7,000-8,000 barrels of oil.
“We expect the first crude oil lifting from the Front Puffin FPSO to take place at the end of August,” it said adding “In the meantime we continue to be encouraged by the performance of the reservoir to date.”
The company said several international oil companies have expressed interest in purchasing Aje oil.
“Laboratory assays have been delivered on Aje crude oil which show it to be as expected a high quality grade of approximately 42 degree API.”
John Hamilton, CEO of Panoro said: “We are very pleased with the reservoir performance at Aje and are planning the next steps to realize its full potential.”
Mr. Tunde Folawiyo who is the group managing director had told Governor Ambode that the company committed about $400m to achieve the feat.
He also said the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility to increase to 25,000 to 50,000 barrels per day in the nearest future.
Jonathan Vatsa who is the commissioner for information, culture and tourism in Niger revealed that the immediate past state government, through a committee it set up, had confirmed the availability of large quantity of crude oil in the Bida Basin.
This is coming after President Muhammadu Buhari called for an exploration of oil in the north and this is expected to reduce the dependence Niger Delta oil.