Lagos becomes an oil producing state as Aje field commences production

Aje field located in oil mining lease 113 has achieved its first oil thereby adding Lagos to the list of oil producing states in the country. Yinka Folayiwo Petroleum Company Limited, an indigenous owned firm and operator of the OML 113 offshore Lagos has on Tuesday announced the commencement of  production of crude oil from the field. According to Punch, Yinka Folayiwo got the Oil Prospecting License 309 in June 1991 as a sole risk contract under the Federal Government's Indigenous Allocation Programme, which main objective was to encourage the development of a locally owned and operated Nigerian upstream oil industry. The YFP said that after over 25 years of exploratory, appraisal and development activities, it had successfully become the first to open the Benin Embayment and described Aje as the first to record production from this part of the country and the first to produce oil outside Niger Delta. Oil produced from Aje field would be stored on the Front Puffin, which is said to have the capacity to produce 40,000 barrels per day and storage capacity of 750,000 barrels. The Chairman of YFP, Mr Tunji Folayiwo, acknowledged this as a great and laudable feat not just for YFP, but for Nigerian oil  and  gas industry, which also has made Lagos state to join the list of oil producing states in the country.