After twenty solid years of trial and error, crude oil has not only been discovered in Lagos State, drilling started yesterday. This brings Lagos State under oil producing States. It is also the first time oil will be found and drilled outside of Niger Delta.
The company behind the feat is Yinka Folawiyo Petroleum Co. Ltd. The company was granted an Oil Prospecting License (OPL 309) by General Ibrahim Badamosi Babangida in June 1991 as a Sole Risk Contract under the Nigerian governmenta��s Indigenous Allocation Program. The program was put in place to encourage the development of a locally owned and operated Nigerian upstream Oil industry.
Following the acquisition of 2D Seismic data in 1994/95, and the drilling of the Aje-1 well in 1996, the Aje field was discovered. A second well, Aje-2, was drilled the following year in 1997. After the successful drilling and testing of both wells, OPL 309 was converted to Oil Mining License (OML) 113 in 1998 with an initial term of 20 years.
Oil produced from the Aje Field will be stored on the FPSO, which has storage capacity of 750,000 barrels of oil and the ability to accommodate production rates up to 40,000 barrels per day.
First oil production from the Aje Field offshore Nigeria commenced on 3 May 2016 from the Cenomanian reservoir. Flow rates will be provided following a period of commissioning and well stabilization.
The Chairman, YFP, Mr. Tunde Folawiyo, was quoted as saying a�?We are very proud of and appreciate 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.a�?
Yinka Folawiyo Petroleum Co. Ltd is believed to be completely owned by local investors.