Indigenous energy company Aradel Holdings Plc, through its subsidiary Aradel Energy Limited, has signed a purchase agreement to acquire 100% interest in the Olo and Olo West surrounding oil fields from Total Energy EP Nigeria and the Nigerian National Petroleum Company Limited. The Olo and Olo West fields were previously part of OML 58.
The acquisition was completed for the payment of $16 million plus $3.5 million in deferred and contingent payments.
Aradel, in a statement on Thursday, said the petroleum mining lease (for Olo) and petroleum exploration license (for Olo West) will be issued subject to payment of the relevant ministerial approval fees and completion of the approved field development plan within the stipulated time frame.
“The addition of Olo and Olo West marginal fields to Aradel’s portfolio of assets is a significant inorganic growth milestone in furtherance of Aradel’s vision and long-term strategy to provide sustainable energy solutions that support economic growth,” said Adegbite Falade, CEO and Managing Director of Aradel. Falade said the acquisition of fringe fields is an important step in our efforts to promote Nigeria’s energy security through organic and inorganic growth.
“We want to commend the unwavering commitment of the Ministers of Petroleum Resources, and our regulator – the Nigerian Upstream Petroleum Regulatory Commission in supporting this acquisition, within the framework of the Petroleum Industry Act.
The CEO said, “We also want to commend the Nigerian National Petroleum Company Limited and TotalEnergies for their commitment to grow Nigeria’s oil and gas production, even from marginal fields,”
The Olo and Olo West fields are located 80 kilometres northwest of Port Harcourt, Rivers State, in the former OML 58 in the eastern Niger Delta.
Fringe fields are fields that have been discovered and have been abandoned for at least 10 years from the date such fields were first discovered.
