Lagos State will Officially Become One Of Nigeria’s Oil-producing States Next Year


A worker inspect facilities on an upstreLagos State will Officially Become One Of Nigeria, after the joint venture partners on the Aje Field offshore well took a decision to begin commercial exploration in 2015.In 1999 when Nigeria returned to democratic rule, it declared nine states as oil producing and constituted them into the Niger Delta Development Corporation. Abia, Imo, Ondo, Edo, Delta, Akwa Ibom, Cross River, Bayelsa and Rivers States were joined by Anambra State in 2012 when it too began commercial oil exploration. When Lagos State starts production, this 10 will now become 11 and Lagos will also be entitled to the 13% derivation which all oil-producing states enjoy. A consortium led by Yinka Folawiyo Petroleum Company will develop the first phase of the Aje shallow water oil field for $220m. In the first phase of production, the aim is to produce 10,000 barrels per day 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. Plans  put together by the consortium 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.  SEE MORE ON PAGE 2

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