Oando to acquire 40 per cent interest in Nigerian oil field

Onshore_rigThree exploration holes have previously been drilled on the Qua Iboe field in the Niger Delta. (Image source: ShavPS)Oando Exploration and Production Limited (OEPL) has signed a farm-in agreement with Network Exploration and Production Nigeria (NEPN) for the acquisition of a 40 per cent participating interest in the Qua Iboe oil field (OML 13) in the Niger Delta region

An application for the agreement has been filed with the Department of Petroleum Resources (DPR) and will be subject to the consent of Nigeria’s petroleum minister.

Upon approval, OEPL would be designated the ‘financial and technical services partner’, and would be delegated to perform some of the technical and project management duties and obligations of the operator in the development of the Qua Iboe field.

OEPL chief executive officer Pade Durotoye said, “This asset is estimated to contain 11.3 mmbbl of 2P reserve, which immediately increases our reserve base by about 50 per cent.

“We are excited that the post-drilling mapping along with new seismic interpretation supports technical and economic producibility of the asset.

“Our selection as the technical partner further underscores our world-class asset development and project delivery capabilities,” Durotoye added.

The field is located onshore near the mouth of the Qua Iboe River in Akwa Ibom state and lies about 2km from the Mobil Producing Nigeria Qua Iboe Terminal.

Wale Tinubu, group chief executive of OEPL’s parent company Oando, remarked, “This strategic acquisition is consistent with our aspiration to expand our E&P portfolio with a balanced mix of producing or near-term assets and organic growth.

“The Qua Iboe field will be the third marginal field with pre-existing proven undeveloped reserves in Oando’s portfolio.

“Subject to all regulatory approvals, our immediate objective is to fast-track the development programme towards achieving early production thereby enhancing stakeholder value,” he added.

Since 1960, three wells have been drilled in the field, with success coming from the Qua Iboe–2 well in 1971, which found oil in six horizons and gas in five zones at depths of between 3,310ft and 7,100ft.

A reserves certification study on the Qua-Iboe field was completed as recently as March 2011 by Netherland and Sewell Associates.

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