Lekoil Ltd announced that it has signed a memorandum of understanding with GE Electric Co. to develop a work program for the Ogo field in OPL310 offshore Nigeria, earlier this week, 4-traders reported.

According to Offshore Energy Today, Lekoil is currently negotiating the financing of the OPL310 appraisal program with other potential partners, which includes an appraisal well that is expected to spud by late 2017 or early 2018.

“OPL 310 contains the world-class Ogo field discovery and is another exciting asset in the Lekoil portfolio. We are pleased to announce this MOU with GE Oil & Gas which marks the first step in our aim to fully develop the Ogo field. The agreement brings a world-class resource to OPL310 and significantly reduces Lekoil cost of capital to bring the field into production,” CEO of Lekoil, Lekan Akinyanmi said.

LEKOIL expects the cost to be $400m for full field oil development and $600m for subsequent upstream gas field development.
Lekoil stated that GE Oil & Gas will receive a percentage of Lekoil future cash flows from the Ogo Field, as well as the ability to supply its products and provide technical expertise throughout the entire life of the project.

Lekoil currently dominates a 40% participating interest and a 70% economic interest in OPL310 that won’t be affected by the MOU.