Lekoil has issued an update regarding operational activity at the Otakikpo marginal field in Nigeria.

Re-entry activities on Otakikpo-002 started with the successful drilling-out of the cement plugs in the 9⅝-in. casing. While attempting to drill-out the cement plugs in the 7-in. liner, the rig crew noticed a potential critical safety issue around the crown block of the rig which has forced temporary suspension of re-entry activities, for safety reasons, pending repairs and replacement of equipment. No injuries were incurred due to the proactive actions of the trained rig crew.

Due to the interruption, first oil is now expected to flow from the Otakikpo-002 to the early production facility (EPF) by the end of 3Q. Otakikpo-002 and Otakikpo-003 are planned to be recompleted for Phase 1 of the development, which also includes the installation of the 6,000 b/d capacity-EPF facility.

Otakikpo is located in oil mining lease 11, about 60 km (37 mi) southeast offshore Port Harcourt, Nigeria, in a coastal swamp location. According to Lekoil, the field holds 2C recoverable resource estimates of 56.75 MMbbl.

The field development plan consists of two phases. Following Phase 1, Phase 2 covers the subsequent incremental development of the rest of the field with a new central processing facility and seven new wells coming onstream during 2017.

The contracts for the Phase 1 field development plan, which included a rig, well services, and an EPF, were tendered and awarded during the first half of 2015. Additionally, prior to rig mobilization, large tracts of swamp land were reclaimed by sand-filling and land consolidation.

Lekoil holds a 40% interest in Otakikpo via its farm-in agreement and joint operating agreement signed in May 2014 with Green Energy International Ltd., which holds the remaining 60%.