Nigeria: LEKOIL provides update on Cost and Revenue Sharing Agreement for OPL 310
24 Feb 2021
LEKOIL, the oil and gas exploration and production company with a focus on Nigeria and West Africa, has announced that
Mayfair Assets and Trusts, in which the Company has a 90 per cent economic interest, has received a letter from
Optimum Petroleum Development Company, the Operator of the
OPL 310
Cost and Revenue Sharing Agreement ( CRSA ) executed for OPL 310.
As announced on 11 December 2020, Optimum conveyed its enforcement of the default clause within the CRSA. Pursuant to the CRSA, the default clause stipulates that, following a cure period, if a default has occurred, Optimum and Mayfair shall jointly seek and agree on a buyer to whom Mayfair s 17.14% Participating Interest as well as the financial obligation within OPL 310 will be transferred. Mayfair will also be entitled to a full reimbursement of all amounts due to it, as a result of past costs spent on the asset, from fut
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Information on the Company The Company would like to take this opportunity to share with its Shareholders an update on its operations and commercial developments. The Company has acquired a balanced portfolio of assets including Otakikpo, a producing asset with near term upside; OPL 276, a potential near-term producing asset with significant resource potential; OPL 310, where the world-class appraisal asset Ogo is located; and OPL 325, which provides additional exploration optionality. Otakikpo - producing asset Despite the wider impact of COVID-19, operations at Otakikpo continue to run effectively. For the first half of 2020, production from Otakikpo averaged approximately gross 5,676 bopd, (2,271 bopd net to LEKOIL Nigeria). This year, the Company announced the execution of definitive agreements for the next phase of the Otakikpo marginal field development. These definitive agreements comprise of service agreements with Schlumberger which cover th