Following the current significant drop in oil prices from recent levels, the Board of LEKOIL Limited has approved the immediate and accelerated implementation of the Company’s general and administrative (“G&A”) cost reduction measures.
These measures are targeting an annual reduction of US$8.0 million or at least 40% in G&A costs, which is inclusive of a reduction in staff numbers.
LEKOIL commenced the immediate execution of these measures which will be completed within the next four to six weeks.
Despite the drop in oil price, production from Otakikpo for the rest of 2020 will be unaffected by these cost reduction measures.
“We have kept our commitments on our world class asset, OPL 310, despite the detrimental effects of the COVID-19 pandemic on the global economy and the subsequent fall in oil price. With the implementation of our cost reduction measures, we believe we are in a good position to navigate this challenging period,” Lekan Akinyanmi, LEKOIL’s CEO, commented.
LEKOIL is the oil and gas exploration and production company with a focus on Nigeria and West Africa. Founded in 2010, the company is led by professionals with extensive experience in the international upstream oil and gas industry as well as in global fund management and investment banking.