Lekoil updates on first crude cargo from Otakikpo

Lekoil Ltd said the first crude cargo produced from the Otakikpo Marginal Field in OML 11 has been lifted from the FSO Ailsa Craig by Shell Western Supply and Trading Ltd, a subsidiary of Royal Dutch Shell.

The Africa-focused oil and gas exploration, development and production company said 120,000 barrels of gross production were lifted.

"Under the terms of the Crude Sales Agreement with Shell Trading, the Company is due to receive its payment for this crude within the next month," it said in a statement.

Lukoil added that current production at Otakikpo was about 5000 bopd.

"With the commencement of regular liftings, the company is focused on ramping up to production of 10,000 bopd, now expected to be by year-end.

"Key components to achieve this Phase 1 milestone involve completing the expansion of onsite storage capacity -- currently being undertaken with minimal capex required -- and utilising a higher capacity shuttle tanker."

Lukoil said non-operational days from the minor reconfiguration and optimisation of offshore infrastructure had led to average production of about 3,000 bopd from the four production strings across both wells (Otakikpo-002 and -003) since the start of commercial production.

At 13: 26 BST, shares in AIM-traded Lekoil Ltd were up 4.11% to 19p each.