An agreement to buy the whole 100% interest in the Olo and Olo West marginal fields from TotalEnergies EP Nigeria and the Nigerian National Petroleum firm Limited has been reached by Aradel Holdings Plc, an indigenous energy firm, through its subsidiary, Aradel Energy Limited.
Previous to that, OML 58 included the Olo and Olo West Fields.
$16 million in consideration, plus $3.5 million in deferred and conditional payments, was paid for the transaction.
The Petroleum Mining Lease for Olo and the Petroleum Prospecting License for Olo West, according to a statement released by Aradel on Thursday, will be granted following the timely payment of the applicable ministerial consent fees and the completion of approved field development plans.
The incorporation of Olo and Olo West marginal fields into Aradel’s asset portfolio represents a noteworthy inorganic growth achievement in alignment with Aradel’s vision and extended strategy to furnish sustainable energy solutions that bolster economic expansion,” declared Adegbite Falade, the company’s chief executive officer and managing director.
Aradel’s strategic move to acquire the prospecting license for Olo West demonstrates their commitment to expanding their presence in the energy sector and maximizing their potential for future growth. This acquisition further solidifies Aradel’s position as a key player in the industry, poised to make significant contributions to both the energy market and economic development.
The CEO said, “We also want to commend TotalEnergies and the Nigerian National Petroleum Company Limited for their commitment to grow Nigeria’s oil and gas production, even from marginal fields.”
The Olo and Olo West Fields are situated in the Eastern Niger Delta, 80 kilometers northwest of Port Harcourt, Rivers State, inside the boundaries of the former OML 58.
Any field that has been found and not been tended to for a minimum of ten years since its initial discovery is considered a marginal field , making the development of these fields crucial for maximizing Nigeria’s oil and gas production potential. With the support of TotalEnergies and the Nigerian National Petroleum Company Limited, these marginal fields have the opportunity to significantly contribute to the country’s energy market and economic growth.
