Federal Government has approved full Field Development Plan (FDP) and Environmental Impact Assessment (EIA) to Green Energy International Limited (GEIL) for phase 2 development of Otakikpo marginal field in Oil Mining Lease OML 11.
The approvals by the Department of Petroleum Resources (DPR,) the regulator of the oil and gas industry, are coming on the heels of its MoU for a finance package of over $350 million from international financiers .
Details of the FDP project consists of drilling of additional seven wells, expanding crude processing infrastructure, construction of a 1.3 million barrels onshore terminal and the construction of a 17Km export pipeline connecting the terminal to an offshore loading system.
According to Director Corporate Affairs, GEIL, Olusegun Ilori, the company plans to significantly increase production from 6000 barrels per day (bpd) to 20,000 bpd.
The EIA approval also gave the company the nod for its environmentally compliant plans to develop the field with due regard to international best practices in the protection of the environment and the ecosystem.
In a statement by the company, the Chairman, Professor Anthony Adegbulugbe commended the DPR for the approval as this complements the efforts of the operator in attracting the necessary financing to unlock potentials of the field and boosts investors confidence in the project.
“This marks a major step forward for us and our partners, to fully develop Otakikpo field, we are happy to see our assets moving forward into full development stage and generate significant cashflow.”
He said the field development plan envisage zero gas flares through the implementation of gas to power and LPG production among others under the small scale gas utilization programme (SSGUP) pioneered by the company.