This week, Lagos officially added another element to its already glittering economic prospects when reports confirmed it is expected to join the league of oil-producing states in Nigeria. A joint venture led by Yinka Folawiyo Petroleum Company Limited has been exploring the Aje Field offshore Lagos, and have taken the final investment decision on the exploration of the field with drilling expected to commence later this year.

Nigerian billionaire and oil magnate, Yinka Folawiyo is the operator. His oil firm holds a 25 percent interest in the field. The other partners are Vitol, which controls 24.05 percent; First Hydrocarbons Nigeria Limited, holding 16.875 percent; Energy Equity Resources Limited, 16.875 percent; Panoro Energy ASA, 12.19 percent; and Jacka Resources Limited, 5 percent.

The group, which submitted an initial proposal for the field development in January 2014, has already concluded plans for the necessary pre-production arrangements needed to kick off the first phase of the Aje shallow water oil field. The planning process cost $220 million. It will produce 10,000 barrels per day of oil from two target wells in the Oil Mining Lease 113 area. The field holds an estimated 32 million barrels of oil reserves.

Taofiq Tijan, a former Commissioner for Energy and Mineral Resources of Lagos State, told local newspaper Punch that in 2014 that such development was 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.” For Lagos, this will prove a massive boost in its bid to consolidate its position as the country’s economic hub.

Lagos is home to Nigeria’s most critical commercial activities. The country’s biggest air and sea ports are situated in the coastal city, as well as the head offices of the biggest companies. These, complimented by a rapidly growing population and consumer market, have propelled the growth of its economy. Experts have even suggested that Lagos alone has a larger economy than many African countries. It contributes about $80.61 billion (35.6 percent) of Nigeria’s GDP. Lagos is also the highest contributor to the Non-Oil GDP (with $129.4 billion, representing about 62.3 percent). However, its oil contribution is expected to soar with news oil discoveries.

In June 2013, emerging oil company Afren Plc and its partner Lekoil announced that they had discovered a significant amount of oil reserves in the offshore Dahomey Basin in Lagos. The assertion is based on the results of drilling and wire line logs from a high impact Ogo-1 well, located on the Oil Prospecting Licence, OPL 310 offshore Nigeria. Preliminary assessments showed revealed the field holds an estimated 78 million barrels of oil equivalent. However, Afren is optimistic that further study will uncover even greater reserves. The discoveries by Afren and Yinka Folawiyo’s Joint Venture are expected to lift Lagos into the club of oil-producing states, and generate more than N30 billion worth of internal revenue every month.

Lagos will become the 11th oil producing state in Nigeria, joining Akwa Ibom, Bayelsa, Rivers, Delta, Ondo, Abia, Imo, Edo Cross River, and very recently Anambra.



http://venturesafrica.com/lagos-joins-league-of-oil-producing-states-in-nigeria/

i made it

Make we hear word jare........ Oil ko ororo ni

Hmmm

:DD

Oil was never a preserve of any region in Nigeria, Kudos to Folawiyo and congrats to Lagosians. Aliko Dangote's refinery is coming at a well appointed time as well.

Long live Odua/Arewa!

Oil is not restricted to anywhere..You'll be surprised about future explorations and where they will be discovered. Although, i don't think this news is true as it has not been widely reported..

ibotjaycob:
Oil is not restricted to anywhere..You'll be surprised about future explorations and where they will be discovered. Although, i don't think this news is true as it has not been widely reported..

Folawiyo has already engaged services of oil field service firms dating back to last year.

I believe their 1st set of wells will be completed for production before the end of 3rd quarter 2015.

At last Lagos is joining Ondo. Which state is next? Definitely Ogun State.

Haters can sand fill their gully eroded land, if they so wish.

fulanimafia:
Oil was never a preserve of any region in Nigeria, Kudos to Folawiyo and congrats to Lagosians. Aliko Dangote's refinery is coming at a well appointed time as well.

Long live Odua/Arewa!

Thank you for rejoicing with those that are progressing.

Oil exploration will soon start in Lake Chad basin too, by the special grace of God.

StOla:


Folawiyo has already engaged services of oil field service firms dating back to last year.

I believe their 1st .set of wells will be completed for production before the end of 3rd quarter 2015.

Do you have a source? well known print/internet. Nevertheless, if true, it is something to be happy about, so we have Ondo and Lagos , there might be more.

superstar1:


Thank you for rejoicing with those that are progressing.

Oil exploration will soon start in Lake Chad basin too, by the special grace of God.

I really want the Lake chad basin exploration to kick off..

10000 bpd is abysmal

ibotjaycob:


Do you have a source? well known print/internet. Nevertheless, if true, it is something to be happy about, so we have Ondo and Lagos , there might be more.

I am the source.

I see their equipment. I work with it. I would be there live when they are ready to produce.

I am the source but no pictures please.

I can't believe some folks are not happy about this news .... Kill yourself.

ibotjaycob:


I really want the Lake chad basin exploration to kick off..

Thats one of the reasons PMB is committed to routing BH. The Lake Chad exploration is a project he holds dear to his heart.

http://www.nigerianwatch.com/news/6824-buhari-to-step-up-search-for-crude-oil-in-lake-chad-basin-in-bid-to-regenerate-borno

This Report Has Added Insult To The Injury Of The Haters, They Will Never Be Happy. Ondo And Lagos(Eko) Can Make Something For Us. But I Want Our Economy To Be Totally Diversified. We Shouldnt Rely On Crude Oil, But Try To Resuscitate Our Agricultural Sector, We Have Land That Can Be Use To Grow Cocoa And Many Other Farm Product. Oodua Agbewa Ooo.

Very soon ,oil will also be discovered in large quantity in the north and our "oyel' chanters would be forced to drink their "oyel',when its Has become a useless comodity.

Good development. Wailing wailers will not be happy with this news!!

superstar1:


Thank you for rejoicing with those that are progressing.

Oil exploration will soon start in Lake Chad basin too, by the special grace of God.

you people are pathetic!

Why are you obsessed with Igbos? How did S.E enter this discussion..

bamidele029:


Ask your brother who came here to call people Yoruba and he was the one who brought in SE



[/b]

and you generalized based on one man opinion?huh?

#paygisinternstheirstipend

Vicotex:
Offemanu, dem don successfuly connect pipe from S/SE, come here dey claim say oil dey lagos.
There is no oil in lagos

.

Udmaster:
and you generalized based on one man opinion?huh?

You asked how SE entered the conversation and I showed you how. It's your brother that brought in SE and others responded since Nairaland is about having conversations. If someone calls your tribe a derogation name it's hard to ignore. By the way you'll see I was not part of the responders I just didn't like your selective reading. You are accusing others of being obsessed with SE while ignoring the fact that it was one of your people that brought SE up

Good luck to them.