Nigeria’s commercial nerve center, Lagos State, is set to become an oil producing state by year end 2015. The Aje Gas and Condensate field, a key oil and gas concern which lies in Oil Mining Lease 113 in the Benin Basin, about 43 kilometres offshore Lagos is currently undergoing its first phase of development by a group led by the Yinka Folawiyo Petroleum Company Limited. Yinka Folawiyo Petroleum Company Limited has a 25 per cent interest in the field. The other operating partners are Vitol which has a 24.05 per cent stake, First Hydrocarbons Nigeria Limited which owns 16.875 per cent, Energy Equity Resources Limited which owns 16.875 per cent, Panoro Energy ASA which owns 12.19 per cent and Jacka Resources Limited which owns a 5 per cent stake.
Speaking on the progress being made at the Aje Gas and Condensate field, Lagos State’s Commissioner for Energy and Mineral Resources, Mr. Taofiq Tijani said: “We believe that this development is good for Nigeria generally because our reserves base has not increased over the years as expected, because the international oil companies are not ready to invest since the Petroleum Industry Bill has not been passed.”
The aim of the first phase is to produce 10,000 barrels per day of oil from two target wells in the Oil Mining Lease 113 area.