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Seplat acquires interest in OMLs 53, 55

By on February 7, 2015

Indigenous oil and gas firm, Seplat Petroleum Development Company Plc, has announced that it has acquired 40 per cent interest in Oil Mining Leases 53 and 22.5 per cent in OML 55, both from Chevron Nigeria Limited.

The firm said in a statement on Thursday that it had completed the acquisition of 40 per cent working interest in OML 53, which is located onshore in the north eastern area of the Niger Delta, and that the remaining interest belonged to the Nigerian National Petroleum Corporation.

The firm confirmed in the statement that the up-front acquisition cost to it after adjustments was $259.4m, of which $69m had previously been paid as a deposit in 2013, and $190.4m paid at completion.

The adjustments to the up-front acquisition cost include a deferred payment of $18.75m contingent on oil prices averaging $90 per barrel or above for 12 consecutive months over the next five years. The company estimates net recoverable hydrocarbon volumes attributable to its 40 per cent working interest to be approximately 51 million barrels of oil and condensate, and 611 billion standard cubic feet of gas.

Seplat said it had been designated as the operator of OML 53 pursuant to the joint operating model approved by the Minister of Petroleum Resources.

The Chief Executive Officer, SPDC, Mr. Austin Avuru, was quoted as saying that, “This transaction fits neatly with our strategy of securing, commercialising and monetising natural gas in the Niger Delta, with a view to supplying the rapidly growing and evolving domestic market.

“In addition to the large scale discovered, but undeveloped gas and condensate resources that are yet to be fully classified through detailed technical work, there are near term opportunities to increase and optimise oil production significantly above current levels.

“We very much look forward to working with NNPC and leveraging our technical and commercial expertise as operator to realise the full potential of this high grade acreage.”

The firm also said it had concluded negotiations to purchase 56.25 per cent of the share capital of Belemaoil Producing Limited, a Nigerian special purpose vehicle that has completed the acquisition of 40 per cent interest in the producing OML 55, located in the swamp to coastal zone of south eastern Niger Delta from Chevron Nigeria Limited.

The NNPC, according to it, holds the remaining 60 per cent interest in OML 55, adding that its effective working interest in OML 55 as a result of the acquisition was 22.5 per cent.

 

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