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Ranking of Lagos as oil, gas producer to improve in 2020

By Udeme Akpan
Lagos State is set to attract required funding to emerge as major oil and gas destination as a rating agency has given a green light to investors to invest in Lekoil, currently developing fields offshore in the state.

Gas flaring

Lagos State had joined the league of oil producers through the coming on stream of Aje field with an initial 3,500 barrels of oil per day (bopd), which was expected to rise to 10,000 bopd by the first quarter of 2017 and 15,000 bopd by early Q2 2017.

The coming on stream of the oil field was a big boost to the State, which said; “It expects an increase in Federal allocations in 2017 through 13 percent derivation from oil and gas.”

However, Renaissance Capital yesterday indicated that the high rating of the oil company was based on the ramp-up of commercial production at the Otakikpo field.

In a message to investors and other stakeholders, Renaissance disclosed that it updated Lekoil estimates following the ramp-up of commercial production at the Otakikpo field and its expectation of phase 2 development in the first half of 2018.

Renaissance indicated that it is now more optimistic, after seeing operational progress at both the Otakikpo and Ogo fields.



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