Lagos State is set to join the league of oil producing states in the country come next year as the joint venture partners on the Aje Field offshore Lagos have taken the final investment decision on the exploration of the field.

A group led by Yinka Folawiyo Petroleum Company Limited took the FID to develop the first phase of the Aje shallow water oil field for $220m.

The aim of the first phase is to produce 10,000 barrels per day of oil from two target wells in the Oil Mining Lease 113 area. A re-entry of Aje-4 will form the first producer, while drilling of Aje-5 is expected to be the second.

The plans include the use of Rubicon’s Front Puffin floating production, storage and offloading vessel, which produced oil from the Puffin field in the Timor Sea. The vessel will be brought up to specification soon, while the procurement of subsea equipment and the contracting of a drilling rig are progressing.

The Aje field’s first stage is scheduled to be brought on stream at the end of 2015.

“We believe that this development is good for Nigeria generally because our reserves base has not increased over the years as expected, because the international oil companies are not ready to invest since the Petroleum Industry Bill has not been passed,” an elated Commissioner for Energy and Mineral Resources, Lagos State, Mr. Taofiq Tijani, told our correspondent.

Yinka Folawiyo is the operator with 25 per cent interest in the field. The partners are Vitol, 24.05 per cent; First Hydrocarbons Nigeria Limited, 16.875 per cent; Energy Equity Resources Limited, 16.875 per cent; Panoro Energy ASA, 12.19 per cent; and Jacka Resources Limited, five per cent.

The JV partners had in January 2014 submitted the Field Development Plan for the Aje field to the Department of Petroleum Resources. The FDP was approved in March and is primarily focused on the development of the Cenomanian oil reservoir.

The FDP envisages first oil commencing in late 2015 with mid-case reserves of 32.4 million barrels.

The first phase of development includes two subsea production wells tied back to a leased FPSO. These wells will most likely comprise the re-completion of the existing Aje-4 well and a new well drilled close to the Aje-2 subsurface location.

In addition, further potential on the block is being defined following the 3D seismic acquisition across both OPL 310 and OML 113.

Lagos State had last year established its oil and gas company following the passage of a bill that sought to establish the Ibile Oil and Gas Corporation.

The bill was to authorise the state government to invest and engage in oil and gas activities.


http://www.punchng.com/business/business-economy/lagos-to-join-oil-producing-states-in-2015/

Good that's my state

The zeal to lay claim of ownership to Lagos just got interesting. Lagos, the cynosure of all eyes.

So no be only some people get oyel. Joor ooo.

Even if this is true, if its not well managed can lead to a curse instead of a blessing. But I trust Lagos govt to do a lot on this.
Eko onibaje ooo!

Cc lalasticlala

This is goodnews,for nigeria.
I think this deservs FP

We don dey hear the story tey tey!
There is no drop of oil in Lagos

Nice, when is ogun coming on board. Most importantly, i can't wait for the mining industry to kick off.

Obiagelli:
Nice, when is ogun coming on board. Most importantly, i can't wait for the mining industry to kick off.

soon jare

This is great news.

However, I am more interested in when the OIL WILL DRY UP IN NIGERIA!!

Gosh!! It's been an immense curse! Curse!

I am a geologist and I had always told people that there is no way you will find oil in Niger Delta and Ghana and you'll will find it in Lagos! Now we Yorubas have it all! Land, water, oil, mineral resources and intellectual!

Good development.....by 2020 I see nigeria amongst the top10 countries in the world

That is great, I wish it was during Fashola, the guy would have performed magic with it, but more money for Tinubu as well.

A story for the gods.


Until we see the imaginery oil. No be today, the story start.

Obiagelli:
Nice, when is ogun coming on board. Most importantly, i can't wait for the mining industry to kick off.

That mining is the key, we could have made twice of what we are making in crude oil in minning especially iron ore mining and steel processing.

Something tells me Nigeria could be sitting on a bigger reserve than we are being made to believe. Who knows? Sokoto could be next!

Ondo is oil producing

Lagos about to be oil producing.

Ogun potential oil producing.

The chest beaters will further invade Lagos. Thank God Akiolu is there to cut their tails!

They dig up this nonsense every 2 years to console themselves.
www.thisdaylive.com/articles/lagos-inches-closer-to-oil-producing-status/152193/

So not only Niger Delta get oyel after all!

Ondo is an oil-producing state already and now Lagos is joining.

Who knows maybe oyel will soon be discovered in my Ibadan too.

tpacalipse:
The chest beaters will further invade Lagos. Thank God Akiolu is there to cut their tails!

sCun:
They dig up this nonsense every 2 years to console themselves.
www.thisdaylive.com/articles/lagos-inches-closer-to-oil-producing-status/152193/

Seems someone is pained here

seunfly:


That mining is the key, we could have made twice of what we are making in crude oil in minning especially iron ore mining and steel processing.

I think the problem with our leaders is their lack of ambition for world class legacies. They are so petty!

By now we should have stopped exporting crude, allowing local industries to consume every drop! Why our leaders harbour no desire for great things still beats me!

Dannyset:
Even if this is true, if its not well managed can lead to a curse instead of a blessing. But I trust Lagos govt to do a lot on this.
Eko onibaje ooo!

you have no idea do you!
oil attracts problems!

No more "our oyel". Nobody should try to claim ownership of Lagos especially this time around. No more 'keep calm and plant cocoa"
Gmbs victory is a blessing

Our b**fran brothers no go like ds good news

Good development...



btw, if you are a shy guy, mind my signature

Ok

MAKE UNA DE DECEIVE UNA SELVES