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Swift Oil acquires Chorus Energy

By on June 18, 2014

A major downstream player in Nigeria’s oil and gas industry, Swift Oil Limited, has made inroads into the upstream sector through the acquisition of Chorus Energy Limited, a marginal field player.

Swift Oil Limited was registered with the Corporate Affairs Commission (CAC) in October 2002 with the main objective of carrying on the business of oil exploration, production, refining and sale of liquid and gaseous hydrocarbons.

It also registered with the Department of Petroleum Resources (DPR) and the Nigerian National Petroleum Company (NNPC) and commenced operations in April 2003.

The company’s operating license covers the operations of petroleum products storage and sales depot and bulk purchase arrangement with the Pipelines and Products Marketing Company (PPMC).

According to Africa Oil + Gas Report, the company has acquired Chorus Energy at a cost of between $10million and $15million.
The marginal field was awarded in 2011 to Green Energy, which was then linked to the Israeli firm Beny Steinmetz Group (BSG).

It was also reported that Swift Oil battled with Seplat Petroleum Development Company, Nigeria’s largest independent Exploration and Production (E & P) company, which was said to have offered between $7 million and $8million.

In 2003, Chorus won three marginal fields-  Matsogo/Amoji/Igbolo fields, located in Oil Prospecting Lease (OPL) 283/C in Delta State, under the Federal Government marginal field programme.

Chorus Energy  was incorporated in 2001 with the purpose of participating in this programme.

The Matsogo, Amoji and Igbolo fields  are now located in OML 56, formerly OPL 283/C.

The company was initially short-listed for Amoji/Igbolo/Matsogo and Asuokpu/Umutu fields in 2002 but awarded Amoji/Igbolo/Matsogo in February 2003, while Platform Petroleum clinched Asuokpu/Umutu fields.
The Amoji/Igbolo/Matsog fields are estimated to have 160billion cubic feet of gas, proven and probable.

However, none of the gas reservoirs has been tested and the fields have only two dimensional (2D) seismic cover.

Seplat offered to acquire the fields to boost its ambitious gas programme.
With the success of Swift Oil, the company currently holds 60per cent interest in these fields, with Seven Energy holding 40per cent.

In a related development, Lekoil recently announced a 40per cent participating and economic interest in the Otakikpo Marginal Field in Oil Mining Lease (OML) 11, onshore eastern Niger Delta.

Founded by Nigerians, registered in the Cayman Islands and listed on the Alternative Investment Market (AIM) of the London Stock Exchange, Lekoil has also announced that it has raised $37.7million to fund  the equity portion, anticipated to be approximately 20per cent of the $67million initial work programme.

Lekoil battled for the acquisition of Otakikpo with First E&P Nigeria and Vertex.

 

 

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