Aradel Holdings Plc, a local energy firm, has finalized a sale and purchase agreement through its subsidiary, Aradel Energy Limited, to acquire full ownership of the Olo and Olo West marginal fields from TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited.
Previously, these fields were part of OML 58. The total
acquisition cost amounts to $16 million, along with an additional $3.5 million
in deferred and conditional payments.
In a statement released on Thursday, Aradel indicated that
the Petroleum Mining Lease for Olo and the Petroleum Prospecting License for
Olo West will be granted following the payment of necessary ministerial consent
fees and the completion of approved field development plans within specified
timelines.
Adegbite Falade, Aradel’s Chief Executive Officer and
Managing Director, stated, “Incorporating the Olo and Olo West marginal fields
into Aradel’s asset portfolio marks a crucial step in our inorganic growth
journey, aligning with our vision and long-term strategy to deliver sustainable
energy solutions that foster economic development.”
Falade emphasized that acquiring the marginal fields
represents a significant advancement in our efforts to enhance energy security
in Nigeria through both organic and inorganic growth strategies.
He expressed gratitude for the steadfast support of the
Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory
Commission in facilitating this acquisition in accordance with the Petroleum
Industry Act.
Additionally, the CEO acknowledged the dedication of the
Nigerian National Petroleum Company Limited and TotalEnergies in their
commitment to increasing Nigeria's oil and gas production, particularly from
marginal fields.
Olo and Olo West Fields are situated in the former OML 58,
in the Eastern Niger Delta, approximately 80 kilometers northwest of Port
Harcourt, Rivers State.
A marginal field refers to any discovered field that has
remained inactive for a minimum of 10 years since its initial discovery.