San Leon Energy PLC (LON:SLE) said the construction of the ELI pipeline is progressing and hook up with ELI Akaso is expected in the second half of the year.
ELI has received approval from the President of Nigeria for floating storage and offloading (FSO) facility ELI Akaso to be set up as an oil terminal.
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ELI is in advanced negotiations with other third-party injectors for use of its pipeline and terminalling facilities.
San Leon also expects to close out the transaction for the Oza marginal field onshore Nigeria.
The oil and gas group had agreed to invest US$7.5mln via a loan to Decklar Petroleum, in which it will also receive a 15% interest.
In the year ended 31 December 2020, the group made a US$9mln loss before tax from US$58mln in 2019.
Gas sales averaged 32.7mln standard cubic feet per day and oil delivered to the Bonny terminal for sales was 21,100 barrels of oil per day.
Pipeline losses by the Bonny Terminal operator increased because of lower pipeline throughput as a result of OPEC quota restrictions.
Eroton completed its three well drilling programme in early 2020, with the final completion and flow of these wells impacted by COVID-19.
Lower oil prices for much of 2020 have led Eroton to improve capital discipline and the deferral of the next drilling campaign, now expected to commence during 2022.
San Leon completed a share repurchase programme of US$2mln of its own shares and declared a special dividend of US$33.3mln, for a dividend yield of 30%.
The cash position was US$14.8mln as of 18 June.
"The period under review has been one of considerable uncertainty globally. Despite this, San Leon has continued to deliver its strategy. 2020 saw operational progress at OML 18 in preparation for its next stage of development, tempered by the macroeconomic environment,” said chief executive Oisín Fanning in a release.
“On a corporate level, we are very pleased to have been able to return just over US$33mln to shareholders while also building and diversifying our portfolio with the Oza and ELI transactions, respectively.”