Boost for Scots oil and gas firm in Nigeria

Eland Oil & Gas has received a boost after the Nigerian government approved the company’s plans to develop another field in Nigeria.

Aberdeen-based Eland said the country’s Petroleum Directorate had given the green light to its proposals for the onshore Gbetiokun field, which the company expects will deliver a big boost to production.

The company hopes to start production from the field this month, with its share of output expected to be 5,400 barrels oil per day (bopd).

Eland suffered a setback last month after facing complications with the Gbetiokun development programme in the Niger Delta area.

It revealed the expected start of production had been delayed by three months, from April. This followed delays in moving the early production facility for Gbetiokun to the field and in the completion of refurbishment work on a rig it will use.

The company said yesterday it had started drilling one of the production wells for Gbetiokun on the OML 40 licence following the successful completion of remedial and upgrade works on the swamp drilling unit OES Teamwork.

Eland completed remedial work on another Gbetiokun well last week.

Last month Eland cut its production forecast for this year to12,000 bopd to 13,500 bopd, from 14,000 bopd to 17,000 bopd in March.

The company is currently producing from the Opuama field on the OML 40 licence.

Eland has faced security challenges in Nigeria. However, the company expects to generate high profits on its output as the operating costs involved with onshore production are relatively low.

Shares in Eland closed down 1p at 122.2p.

Source: The Herald