Lagos offshore field becomes Nigeria's first oil ouput outside Niger Delta.
Nigerian firm Yinka Folawiyo Petroleum (YFP) has begun crude oil production from the offshore Aje field located 24km off the Lagos coast, becoming the first Nigerian output outside the oil hub in the southern Niger Delta.
Production at the Lagos field follows more than 25 years exploring and developing the site.
YFP says the field can yield up to 40,000 barrels per day and the company has storage facilities for 750,000 barrels on the Front Puffin floating production, storage and offloading (FPSO) unit off Lagos.
Production starts at a time when oil is trading at exceptionally low prices.
Nigeria’s oil and gas industry is concentrated in the Niger Delta region whose current daily output is estimated at about 1.8 million barrels, according to the Organization of the Petroleum Exporting Countries (OPEC). Nigeria also has the largest petroleum industry on the African continent.
However revenue from Nigeria's crude oil has dropped since 2014 widespread corruption, disruption from militants and a slump in international prices have seen a drop in r
Nigerian oil exports to the US ceased in mid-2014 due to increased production in America. The largest consumer of Nigerian oil is now India.