Lekoil, the operator of Otakikpo Marginal Field, is dealing with the threat of militancy by moving crude it produces offshore directly into storage tanks, bypassing Nigeria’s pipelines prone to attacks by Niger Delta militants.

In a December 8 note to investors, the company announced that oil is flowing at the Otakikpo Marginal Field to onshore storage tanks, where it will be evacuated upon completion of the offshore pipeline.

The company said that all onshore facilities have been fully commissioned and signed off by the regulators, and the offshore pipeline leading from the storage tanks to the tanker offloading manifold is 80% complete.

Upon completion of the pipeline, the joint venture partners comprising of Green Energy International Ltd as Operator and LEKOIL as Technical Partner, expects to start transporting to the export terminal and subsequently, be able to gradually ramp up production to 10,000 bop.

“We’re delighted to announce this key milestone from the Otakikpo field. I would like to thank the entire team that has worked so hard on this project, our partners Green Energy, investors, debt financiers, our host communities and our government regulators for their continued support,” said Lekan Akinyanmi, LEKOIL’s CEO.

Lekoil has begun a novel approach of producing from the field into tanks, starting with around 5,000Barrels Per Day. Lekoil is finalising the construction of a six-kilometre pipeline to transport the crude to the tanker offloading manifold.

Nigeria’s pipelines have been under severe attacks by militants calling themselves the Niger Delta Avengers for much of 2016.

Pipelines leading to terminal routes including the TransForcados System, Nembe Creek Trunk Line, Trans Niger Pipeline, Line to Qua Ibue Terminal and Kwale To Brass Line, have been shut down by militants at various times in 2016, with the TransForcados System out for all of 10 months.

Otakikpo is sited in a coastal swamp location in oil mining lease (OML) 11, adjacent to the shoreline in the south-eastern part of the Niger Delta. Lekoil Nigeria exercises the rights and benefits of its 40% Participating and Economic interest in Otakikpo via the Farm-in Agreement and Joint Operating Agreement signed on 17 May 2014 with Green Energy International Limited. (Isaac Anyaogu/Business Day)

Update news