LekOil's Otakipo farm-in approved by Nigeria's petrol minister

LekOil has confirmed that it has received consent from Nigeria's minister of petroleum resources for its acquisition of a 40% stake in the Otakikpo Marginal Field.

The news follows LekOil's deal with Green Energy in May 2014 and will allow Lekoil to exercise rights and benefits within the confines of the farm-in agreement.

“Otakikpo is an asset with tremendous potential and I am delighted that Lekoil has been able to demonstrate its ability as a strong technical and financial partner,” said chief executive Lekan Akinyanmi.

“We continue our hard work at site, with our partners, to deliver first oil for the benefit of our host communities, regulators and stakeholders."

The Otakikpo site falls withing a coastal swamp, close to the shoreline in the south-eastern part of the Niger Delta.

First oil in expected by mid-2015 and LekOil will provide regular operational updates. The company is set to receive a $4m payout if it hits production targets, following May's $7m signature bonus.

As of 9:00 BST, LekOil was trading 11.3% higher at 27p.