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Oando to acquire 40 per cent stake in Qua Iboe oilfield

By on May 28, 2012

OANDO Exploration and Production Limited (OEPL), a subsidiary of Oando Plc, with 13 exploration and production assets, has sealed a farm-in agreement with Network Exploration & Production Nigeria Limited (NEPN) for the acquisition of 40 per cent participating interest in the Qua Iboe field (OML 13) subject to the consent of the Minister of Petroleum Resources.

Located onshore near the Qua Iboe River in Akwa Ibom State, the acreage is about two kilometers from Mobil Producing Nigeria (MPN) Qua Iboe Terminal, in Shell Petroleum Development Company of Nigeria (SPDC) OML 13, as it was awarded to NEPN as part of the 2003 Marginal Field Round.

Group Chief Executive Officer of Oando Plc, Wale Tinubu pointed out that the strategic acquisition is consistent with the company’s aspiration to expand its exploration and production portfolio with a balanced mix of producing or near term assets and organic growth.

He disclosed that the Qua Iboe field would be the third marginal field with pre-existing proven undeveloped reserves in the company’s portfolio.

According to him, “subject to all regulatory approvals, our immediate objective is to fast-track the development programme towards achieving early production thereby enhancing stakeholder value.”

Also speaking, Chief Executive Officer, OEPL, Pade Durotoye said that the asset is estimated to contain 11.3 mmbbl of 2P reserve, which immediately increases the company’s reserve base by about 50 per cent.

“We are excited that the post-drilling mapping along with new seismic interpretation supports technical and economic producibility of the asset. Our selection as the technical partner further underscores our world class asset development and project delivery capabilities,” he added.

OEPL and NEPN signed all agreements relating to the transaction on the 2nd of February 2012 and have subsequently filed an application with the Department of Petroleum Resources (DPR) for the consent of the Honourable Minister of Petroleum Resources.

Upon the Minister’s approval, OEPL would have acquired a 40 per cent participating interest in the Qua-Iboe field (OML 13) and will be designated the financial and technical services partner, delegated to perform some of the technical and project management duties and obligations of the operator in the development of the Qua Iboe field.