Good News! Lagos Begins Exportation Of Crude Oil

Following the commissioning of a production and storage vessel
for crude oil, Lagos state is set for its first oil lifting for export
from Aje field, offshore Lagos.
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.
Meanwhile, the search for oil in the north has received a boost
following the revelation by the Niger state government that large
quantity of crude oil was in the Bida Basin ready for exploration.
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.