Nigeria  

Map Nigeria

Map Nigeria - OPL 281 property
Flag of Nigeria

Nigeria, officially the Federal Republic of Nigeria, is a federal constitutional republic comprising thirty-six states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. Its coast in the south lies on the Gulf of Guinea on the Atlantic Ocean. The three largest and most influential ethnic groups in Nigeria are the Hausa, Igbo and Yoruba. In terms of religion Nigeria is roughly split half and half between Muslims and Christians with a very small minority who practice traditional religion.

The people of Nigeria have an extensive history. Archaeological evidence shows that human habitation of the area dates back to at least 9000 BC. The area around the Benue and Cross River is thought to be the original homeland of the Bantu migrants who spread across most of central and southern Africa in waves between the 1st millennium BC and the 2nd millennium.

The name Nigeria was taken from the Niger River running through the country. This name was coined by Flora Shaw, the future wife of Baron Lugard, a British colonial administrator, in the late 19th century.

Nigeria is the most populous country in Africa, the eighth most populous country in the world, and the most populous country in the world in which the majority of the population is black. It is listed among the "Next Eleven" economies, and is a member of the Commonwealth of Nations. The economy of Nigeria is one of the fastest growing in the world, with the International Monetary Fund projecting a growth of 9% in 2008 and 8.3% in 2009. International Monetary Fund (IMF) has also announced that Nigeria is the third fastest growing economy in the world after China and India, as a result of the growth of the nation’s economy from 6.9 per cent in 2009 to 7.4 per cent this year. It is the third largest economy in Africa, it is also the largest exporter of oil in Africa and is a regional power that is also the hegemon in West Africa.

For more information on Nigeria please visit: en.wikipedia.org/wiki/Democratic_Republic_of_the_Congo.

Block OPL 281

The production mission is currently being addressed by acquisition of Nigerian near production assets acquired in Joint Venture with EER a Nigerian Oil and Investment and Consulting company. SacOil will have a 50% benefit and funding obligation in all EER joint venture acquisitions.

The background and deal

OPL is an ex Shell permit having been drilled between 1967 and 1970. The initial award was to a company named Binergy Limited who subsequently had their licence revoked. The block was rewarded to Transcorp in 2006 as part of a Mini Bid Round. Transcorp have paid the majority of the $30 million signing bonus and will cede a 40% equity stake to SacOil on condition the licence is reinstated to Transcorp by the Federal Government of Nigeria.

Terms of the Farm-in:

  • EER is the technical partner who will operate the asset on behalf of the JV and Transcorp
  • JV will pay $20 million upon Minister of Petroleum consent for deal
  • JV will pay $7.5 million upon commercial production declaration
  • JV will pay $5 million within 90 days of first oil being produced

Technical

Discovery wells Obote-1 and Ekoro-1 drilled between 1967-1970. The terrain is an onshore swamp location and the entire block has been covered by Shell with 3D Seismic during 1991/2. The competent persons report indicates Contingent Resources of 250 MMBOE with further potential in two additional prospects and deeper zones. The hydrocarbons in the two wells were discovered between 2,400 and 4,000 metres with Obote-1 encountering 4 hydrocarbon levels and Ekoro-1 intersecting 8 hydrocarbon levels.

Download the Competent Person’s Report on OPL 281, Nigeria

OPL 233

Download the Competent Person’s Report on OPL 233, Nigeria