Yemisi Izuora
Dr. ABC Orjiakor
SEPLAT Petroleum Development Co PLC a Nigerian company with huge oil and gas interest has acquired a 40 percent working interest in OML 53, onshore north eastern Niger Delta, from Chevron Nigeria Ltd.
SEPLAT acquired the oil filed for $259.4 million.
The company has also concluded negotiations to buy 56.25 percent of Belemaoil Producing Ltd., a Nigerian special purpose vehicle that has bought a 40 percent interest in the producing OML 55, located in the swamp to coastal zone of south eastern Niger Delta.
NNPC holds the remaining 60.00 percent interest in OML 55, and Seplat’s effective working interest in OML 55 as a result of the acquisition is 22.50 percent, it said.
SEPLAT is paying $132.2 million for its 22.50 percent interest in OML 55, after adjustments.
It has also advanced certain loans of $80.0 million to the other shareholders of Belemaoil to meet their share of investments and costs associated with Belemaoil.
In addition, SEPLAT said talks are underway to determine repayment terms for the initial deposit against the acquisition of $52.5 million that Belemaoil funded with bank debt, which may be added to the total amount loaned to Belemaoil by SEPLAT.
Current gross production at OML 55 is 8,000 barrels of oil per day and Seplat has been designated operator of OML 55.
The Company will also act as technical services provider to Belemaoil.
SEPLAT estimates net recoverable hydrocarbon volumes attributable to its 40 percent working interest in OML 53 is 51 million barrels of oil and condensate and 611 billion square cubic feet of gas.
Seplat has been designated operator of OML 53.