After many years of anticipation, it seems that Lagos State may finally join the league of states from which crude oil is exported. This achievement could be recorded as early as August if reports coming from the operators of the facility at the Aje oil field are anything to go by.
The Aje oil field, located off the coast of Lagos, was discovered in 1997; in 2014, the Nigerian government gave its assent o the Aje Field Development Plan, which detailed the activities, processes and cost involved in the setting up of the oil facility. The investment decision for the project was made later that year.
The Yinka Folawiyo Petroleum Company (YFP) partnered with Panora Energy, an exploration and production company based in the United Kingdom on the development; Panora ASA has about 6.5% interest in the oil field, according to information on the project found on the company’s website.
A statement by Panora indicates that production of crude oil at the offshore facility, which began in May, will be limited to between 7000 and 8000 barrels per day (bpd), until what it called “outstanding issues” are fully dealt with.
Compared to the national output of about 1.53 million bpd in June, the initial output of the Aje oil field is rather small. But its very existence probably hints at the presence of more, perhaps larger reserves of oil off the coast of Lagos. This could substantially boost the state’s revenue and open up more opportunities for employment and the growth of its economy.
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