Lagos State is set to join the league of oil producing states in the country come next year as the joint venture partners on the Aje Field offshore Lagos have taken the final investment decision on the exploration of the field.
A group led by Yinka Folawiyo Petroleum Company Limited took the FID to develop the first phase of the Aje shallow water oil field for $220m.
The aim of the first phase is to produce 10,000 barrels per day of oil 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.
The first phase of development includes two subsea production wells tied back to a leased FPSO. These wells will most likely comprise the re-completion of the existing Aje-4 well and a new well drilled close to the Aje-2 subsurface location.
In addition, further potential on the block is being defined following the 3D seismic acquisition across both OPL 310 and OML 113.
Lagos State had last year established its oil and gas company following the passage of a bill that sought to establish the Ibile Oil and Gas Corporation.
The bill was to authorise the state government to invest and engage in oil and gas activities.
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