Lagos State on Wednesday joined the list of oil-producing states in Nigeria as Yinka Folawiyo Petroleum Company Limited (YFP), started the production of crude oil from its Aje Field located in Block OML 113, offshore of the state.
The south-western state will now get 13 percent derivation from the federation account.
YFP, a wholly-owned indigenous firm partners New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited.
According toYFP the achievement is coming 25 years after a lot of exploratory drilling in the Aje fields.
“The attainment of this milestone is indeed a laudable achievement not just for YFP but for the Nigerian oil and gas industry as a whole and indeed Lagos State which can now be addressed as an oil producing state.
Recording this achievement in the present global oil climate together with the peculiar challenges of the field is clearly no mean feat,” Tunde Folawiyo, YFP chairman, was quoted to have said.
A statement endorsed by its General Manager, Bolaji Musa, read: “After over 25 years of exploratory, appraisal and developmental activities, YFP has successfully pioneered the opening of the Frontier Benin Embayment. The Aje Field is the first field to record production from this part of Nigeria and is the first production outside of the Niger Delta.
“Commissioning of the Front Puffin FPSO was successfully completed after its arrival in Nigeria on 16th March 2016.
“We are very proud of and appreciative of the efforts, determination and commitment, of the entire Aje Project team past and present, the constant support from our regulators, the DPR and Ministry of Petroleum and our financiers. We believe this crucial support will spur us on to even greater achievements.
“The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.”
Under the Nigerian government’s indigenous allocation programme, which was set up to encourage the development of locally owned industries in Nigerian upstream sector, YFP was awarded the oil prospecting license (OPL 309) in June 1991 as a sole risk contract.
The company did not disclose the volume of current output from the field but said the company has capacity to produce 40,000 barrels per day and storage capacity of 750,000 barrels. The field is situated in water depths ranging from 100 to 1,000 metres, about 24 km from the coast.