Yinka Folawiyo Petroleum has received consent from the Nigerian Minister of Petroleum Resources for the renewal of the OML 113 license.
MX Oil said on Friday that Yinka Folawiyo Petroleum was granted the renewal for another term of 20 years.
According to the company, which has an investment in the license, the renewal is subject to the satisfaction of certain conditions, including a commitment to develop the gas potential of the license.
The OML 113 is operated by Yinka Folawiyo Petroleum with New Age, Energy Equity Resources, Mx Oil, and Panoro as its partners.
It is worth noting that the license, located in the western part of Nigeria in the Dahomey Basin, holds the Aje field. The field, discovered in 1997, is situated in water depths ranging from 100 to 1,000 meters about 24 km from the coast.
The Aje field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir, and an Albian gas condensate reservoir.
The JV partners saw first oil flow from the Aje field back in May 2016. Oil produced from the Aje field is stored on the Front Puffin FPSO which has production capacity of 40,000 barrels of oil per day and storage capacity of 750,000 barrels.
The license and the field were also a matter of dispute between Panoro and the remaining JV partners over a cash call notice for a new well on the Aje field back in December 2016.
The JV members settled their differences on January 2 this year following a decision to halt and withdraw all litigation and arbitration proceedings among the partners.
In a recent quarterly presentation, Panoro said proceeds from Aje crude sales were being applied by the JV towards operating expenses and the reduction of historical payables.
Panoro said the Joint Venture partners were in continued talks over the next phase of activity at the field based around the submitted Turonian gas FDP and possible exploitation of the Turonian oil rim.
