The management of Green Energy International Limited (GEIL), the operator of the Otakikpo marginal field in Oil Mining Lease OML 11 has secured Federal Government’s approval for the full Field Development Plan (FDP) and Environmental Impact Assessment (EIA) to enable the company implement the phase 2 development of the field.
These approvals by the Department of Petroleum Resources (DPR) the regulator of the oil and gas industry, are coming on the heels of its Memorandum of Understanding (MoU) for a finance package of over $350 million dollars from international financiers .
The approved FDP project consists of drilling of additional seven wells, expanding crude processing infrastructure, construction of a 1.3 million barrels onshore terminal and the construction of a 17km export pipeline connecting the terminal to an offshore loading system. The company plans to significantly increase production from 6000 barrels per day (bpd) to 20,000 bpd.
The EIA approval also gave the company the nod for its environmentally compliant plans to develop the field with due regard to international best practices in the protection of the environment and the ecosystem.
In a statement by the company, the Chairman, Professor Anthony Adegbulugbe commended the DPR for the approval as this complements the efforts of the operator in attracting the necessary financing to unlock potentials of the field and boosts investor confidence in the project.
He stated: “This marks a major step forward for us and our partners, to fully develop Otakikpo field, we are happy to see our assets moving forward into full development stage and generate significant cashflow.” adding “we are aiming to be the benchmark for developing and maximising hydrocarbons in the country in a most environmentally compliant manner.”.
He said the field development plan envisage zero gas flares through the implementation of gas to power and LPG production among others under the small scale gas utilization programme (SSGUP) pioneered by the company.
Green Energy International Limited (GEIL) recently announced the signing of a memorandum of understanding (MoU) with a consortium of international firms valued at $350million for the second phase development of Otakikpo. The consortium include London based International Bank, prominent crude oil off-taker and EPIC contractor.