NNPC, TotalEnergies Sell Oil Fields to Nigerian Energy Firm
- Aradel Energy Resources said it has acquired the Olo and Olo West marginal fields for a total consideration of $19.5 million
- The development is expected to strengthen the position of the energy company in the Nigerian oil and gas industry
- It noted that the Petroleum Mining Lease for Olo and Petroleum Prospecting License for Olo West will be issued after important steps
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The acquisition of the Olo and Olo West marginal fields for a total consideration of $19.5 million has been announced by Aradel Energy Resources.
Source: Getty Images
A marginal field is an oil field that has not been fully developed at a given point in time and may not provide enough net income to justify development.
Aradel's production capacity is anticipated to be greatly increased, solidifying its position in the Nigerian oil and gas business, following its acquisition of the Olo and Olo West Fields from TotalEnergies EP Nigeria and Nigerian National Petroleum Company Limited (NNPC).
The energy company claimed that upon the completion of approved field development plans and the payment of applicable Ministerial Consent fees, the Petroleum Mining Lease (for Olo) and Petroleum Prospecting License (for Olo West) will be issued.
The company said,
“The addition of Olo and Olo West Marginal fields to Aradel’s portfolio of assets is a significant inorganic growth milestone in furtherance of Aradel’s vision and long-term strategy to provide sustainable energy solutions that support economic growth."
In order to advance energy security in Nigeria through both organic and inorganic growth, Aradel's CEO and managing director, Adegbite Falade, stated that the acquisition of the Olo and Olo West Marginal Fields is a significant step.
“We want to commend the unwavering commitment of the Ministers of Petroleum Resources, and our regulator – the Nigerian Upstream Petroleum Regulatory Commission in supporting this acquisition, within the framework of the Petroleum Industry Act (PIA),” Falade said.
He added,
“We also want to commend the NNPC and TotalEnergies for their commitment to grow Nigeria’s oil and gas production, even from marginal fields.”
Notably, the Olo and Olo West marginal fields are situated in the Eastern Niger Delta, 80 kilometers northwest of Port Harcourt, Rivers State, within the boundaries of the former OML 58.
African country begins shutting down oil field
Legit.ng reported that oil output in Libya decreased as authorities in the eastern member of OPEC imposed a shutdown, intensifying a crisis that the UN warned might bring about the collapse of the country's economy.
According to those familiar with the situation, production has stopped at the El-Feel field in southwest Libya, and local operators are signalling a gradual nationwide stop to pumping.
Following the decision by the internationally recognised government in the west to remove central bank governor Sadiq Al-Kabir, Bloomberg reported that the eastern Libyan authorities stated on Monday, August 26, that they would suspend all output and exports.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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