Pan Africa Oil Limited signs MoU with Nigerian explorer for marginal fields

oil nigeria-johnhill wikimedia commonsPan African Oil Limited has signed a Memorandum of Understanding (MoU) with Nigerian company Blackfire Exploration and Production Limited to jointly explore marginal fields in Nigeria

The Nigerian department of petroleum resources (DPR), in November 2013, had announced that 16 onshore and 15 offshore fields will be put up for bidding. The winning companies’ list would be announced on 11 April 2014.

Pan African Oil Limited, as part of its strategy to expand its operations in Sub-Saharan Africa, has been evaluating assets in Nigeria for a year and a half, the company said.

According to the MoU, in the event of a successful bid, Pan African Oil Limited will retain a minimum 40 per cent working interest and provide technical, financial and operational support for field development.

Nigeria reportedly has the largest oil and gas reserve base in sub-Saharan Africa with an estimated 37bn barrels of oil and five trillion cubic metres of gas. Currently, over 1,000 oilfields have been discovered with only 35 per cent producing, industry sources said. To maximise the production capacity, diversify oil production sources, increase oil and gas reserves, the Nigerian government has, since 2001, promoted the licensing of marginal fields.

In Namibia, Pan African Oil Limited is currently working to advance exploration activity on its three operated blocks — 2211Ba and 2311a in the Walvis Basin and 2612A in the Luderitz Basin.

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