South African based oil and gas company, SacOil, has signed an MOU with London-based Energy Equity Resources (EER) to explore oil and gas opportunities in Nigeria
Their joint venture vehicle, SacOil Energy Equity Resources Limited (SEER) has been awarded a 12-month contract by the Nigerian National Petroleum Corporation (NNPC) for the purchase of Nigerian crude oil grades.
SacOil has stated that SEER is the contracting party to the agreement for the sale and purchase of Nigerian crude oil with NNPC. The crude oil agreement provides SEER with the right to acquire crude oil from NNPC for onward sale. The amount of offtake by SEER is dependent on the aggregate crude production in Nigeria and the prevailing global oil price.
SacOil CEO Thabo Kgogo said, “Nigeria is a prolific hydrocarbon nation and the largest exporter of crude oil on the African continent. We are pleased to have secured this crude allocation for trading as it provides us with a structured and measured exposure to this attractive market.”
NNPC had invited investors to bid for 12-month contracts to purchase 950,000 bpd of Nigerian crude grades last October. The national oil company had then announced plans to reduce its crude buyers from 43 in 2015 to 15 this year.