Aje Field Commences Crude Oil Production In Offshore Lagos | Independent Newspapers Limited
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Aje Field Commences Crude Oil Production In Offshore Lagos

Posted: May 10, 2016 at 12:37 am   /   by   /   comments (0)

Phillip Oladunjoye, Lagos Yinka Folawiyo Petroleum Company Limited (YFP) has said that it has started oil production from its Aje field located in block OML 113 offshore Lagos.

The oil production would be the first offshore field output outside the country’s oil hub in the Niger delta.
“Yinka Folawiyo Petroleum Company Limited (YFP) is pleased to announce that it has commenced production of crude oil from its Aje field located in block OML 113 offshore Lagos,” the company said in a statement.

The company did not disclose the volume of current output from the field but said it has capacity to produce 40,000 barrels per day.
“Oil produced from the Aje field will be stored on the Front Puffin which has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels,” it said.

The company noted that production began after more than 25 years of exploratory, appraisal and developmental activities in the field, making Lagos, Nigeria’s commercial capital, an oil-producing state.
Nigeria’s oil and gas industry is concentrated in the southern delta states but the region has been dogged by unrest and disruption from militants demanding a fairer share of revenue.

Pipeline attacks and illegal refining or “bunkering” as it is called locally have hit output, which is currently estimated at about 1.8 million barrels a day, according to OPEC. Nigeria is reliant on oil revenue for its economy but crude earnings have been depleted drastically since the slump in global prices that started in mid-2014.

Meanwhile, apart from the fact that production from the well would contribute to Nigeria’s effort at attaining four million barrels per day crude oil target and also help achieve the daily target of 2.5 million barrels as well as boost the country and Lagos State’s revenue profile, generate employment and make positive contribution to the economy of the country in general, there are also concerns about the management of proceeds from the field. This is mainly due to the large-scale corruption that has bedeviled the Nigeria’s oil and gas sector over the years.

There is also concern around environmental management, mostly because of the fact that most of the communities in the Niger Delta are currently battling with environmental pollution and degradation of immense proportion, due to oil exploration activities within the area.

Aje is an offshore field located in Oil Mining Lease (OML) 113 in the western part of Nigeria, in the Dahomey Basin. The field is situated in water depths ranging from 100 to 1,000 metres about 24 km from the coast. 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.