On Tuesday, an announcement was made by Yinka Folawiyo, registering a break in the Lagos-Aje oil field. This has automatically made Lagos a bonafide oil producing state in Nigeria.
The Lagos-Aje oil field is located in Oil Mining Lease 113, Dahomey Basin. The field is situated in water depths ranging from 100 to 1,000 metres and about 24 kilometres from the coast. The Aje-1 and Aje-2 oil wells were discovered in 1996 and 1997 respectively.
The Tuesday announcement of a break in the field was made by Yinka Folawiyo Petroleum Company Limited. The oil firm is an indigenous firm and an operator of the OML 113 offshore Lagos.
The above mentioned company teamed up with a couple of partners to make this dream come true. In conjunction with New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, Pan Petroleum (Panoro Energy) Aje Limited and PR Oil & Gas Nigeria Limited, Aje oil wells have kicked off production in earnest.
This development has officially made Lagos state a bonafide oil producing state. Lagos will be the first ever Nigerian Western region to become an oil producing state. It has also broken the record as the first of its kind outside the Niger Delta, the home of Nigeria’s “liquid gold”.
The chairman of Yinka Folawiyo Petroleum Company also disclosed already set plans to ensure the effective storage and offloading of the oil. He said that oil produced from Aje field will be stored on the Front Puffin.
YFP says that the Front Puffin Floating Production, Storage and Offloading (FPSO) unit, has a daily production capacity of 40,000 barrels and a storage capacity of 750,000 barrels.
Despite the global decline in oil price, the Aje oil field development is still good news as well as a great achievement.
“The attainment of this milestone is indeed a laudable achievement not just for the 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.” – Tunde Folawiyo, YFP Chairman