An oil firm in Nigeria, Yinka Folawiyo Petroleum Company Limited (YFP) has announced that it has commenced the production of crude oil from its Aje Field located in Block OML 113, offshore Lagos.
“Yinka Folawiyo Petroleum Co. Ltd (YFP) is pleased to announce that it has commenced production of crude oil from its Aje field located in block OML 113 offshore Lagos,” the firm said in a statement on Tuesday.
According to the oil firm, oil produced from the Aje field will be stored on the Front Puffin, which has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels.
Speaking on the development, the Chairman of YFP, Tunde Folawiyo said: “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.”
“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.”
Aje is an offshore field located in OML 113 in the Dahomey Basin in the Southwest. The field is situated in water depths ranging from 100 to 1,000 metres, about 24 km from the coast.
Nigeria relies heavily on oil revenue for its economy, but crude earnings have been depleted drastically since the slump in global prices that started in mid-2014.