SacOil Buys Into Nigeria Oil Field
07 Dec 2010
SacOil buys into Nigeria Oil Field
Pan African oil and gas company SacOil and its joint venture (JV) partner Equity Energy Resources have each acquired a 20% interest in an oil licence off the coast of Nigeria. Project owner Nigdel United Oil Company would retain the remaining 60% shareholding in the licence area.
Under the terms of the acquisition, the JV partners would pay $8-million in two tranches, with the first $0,3-million paid upon the execution of agreements with Nigdel, and the remaining $7,8-million payable once Nigerian governmental approval has been received.
SacOil said in a statement on Tuesday that first oil production from the licence area was expected by mid-2013, at a rate of around 7 200 bbl/d, building up to 10 000 bbl/d.
The JV will carry 100% of the minimum work programme cost until first oil production and would have control on financial, technical and operational decision making. The estimated cost of 100% of the minimum work programme is about $50-million.
SacOil said that the agreement is the first for the JV and marked a “significant milestone” in the development of SacOil. The JV was now actively pursuing other short-term production situations in Nigeria with the view to progressing its near term production strategy.
Source: Engineering News Online