LEKOIL SIGNS MOU WITH SCHLUMBERGER AND MAJOR OIL COMPANY FOR FURTHER DEVELOPMENT AT OTAKIKPO

LEKOIL has signed a Memorandum of Understanding (‘MOU’) with Schlumberger and a subsidiary of a major international oil company for the development of Otakikpo Joint Venture (JV). The MOU covers a comprehensive infrastructure sharing and drilling programme around a group of marginal field assets in OML 11. The capital expenditure to be incurred by the Otakikpo JV is approximately US$170 million covering new wells and processing infrastructure, of which LEKOIL is expected to fund US $68 million.