May 21, 2018

Aje oil field faces further delay

Aje oil field faces further delay

There were indications that the Aje oil field offshore Lagos may face further delay in its first production programme for March this year, as one of the stakeholders, MX Oil Plc has reached an agreement to sell its investment in the field to GEC Petroleum Development Company Limited (GPDC), for a total consideration of about $18 million.

The Aje shallow-water field has rescheduled to reach first oil at the end of March 2016 against the end of 2015 previously targeted by the joint venture partners on the project. This is the second time the production date is being postponed as the first target was December 2015.

MX Oil, in a statement recently confirmed that it has reached an agreement to sell its stake on the field, as about $3.5 million will be an initial payment to MX Oil in three stages. Accordint to the firm, the first payment of $2 million expected on or around March 14, and would be used to finance the remaining cash calls expected to be required for the investment in order to bring the field into production.

GPDC, he said would then send MX Oil a further payment of $5.75 million followed by another payment of $5.75 million six months later. Read more

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