Transcorp takes over OPL 281
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- Category: Business
- Written by Kayode Ekundayo, Lagos
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Transnational Corporation of Nigeria Plc (Transcorp) has taken full control of Oil Processing License (OPL) 281 with 60 per cent equity.
The reversion was sequel to the decision by Transcorp management along with its two other partners, SacOil Holdings Limited and Energy Equity Resources (EER) to become a full fledge Nigerian oil and gas upstream company with production.In the previous agreement, SacOil and EER carried 100 per cent of the costs. Transcorp was expected to post the performance bond to the Nigerian government.
Under the new scheme, Transcorp will remain the operator of OPL 281 and will pay 60 per cent of the costs to first production.
The block has a gross unrisked contingent resource of approximately 100MMboe, with additional potential in two further prospects and deeper zones.
In conformance with the change, Transcorp, according to Dupe Kupoluyi Olusola,Director, Resources would take full responsibility for the operation of the block.
OPL 281 is an onshore block covering an area of 138km² and located in the western delta region of Nigeria, 25 kilometers away from the Forcados Crude Export Terminal. From 1967 to 1970, two discovery wells were drilled. The block was reinstated to Transcorp in April 2011. Current equity ownership is Transcorp 60 per cent, EER 20 per cent and SacOil 20 per cent.
“The revised agreement is in line with Transcorp’s vision of building a pan-African energy business with strong indigenous operational capabilities; Transcorp Plc. is excited by this development and is now poised to lead the process of bringing the asset to production.”
Consequently, Transcorp she said has revised the tranches for the fees in OPL 281 for SacOil and its technical joint venture partner, Energy Equity Resources. SacOil paid $12.5 million towards the Signature Bonus on February 28, 2011, and $12 million which becomes due once the remaining conditions precedent to the farm-in agreement have been met.
The conditions, she said include perfection of title and all the necessary Nigerian government and Nigerian National Petroleum Company (NNPC) approvals in relation to the license. By this revision also, EERs 50 per cent portion of the fees will be carried by SacOil as an interest bearing loan to EER to be repaid from EERs entitlement to production in OPL 281.
Transcorp is also pleased with the revised terms as we will no longer be required to provide Transcorp with carry-on costs from the point of entry to first oil,” said Robin Vela, Chief Executive Officer, SacOil. “All costs are now carried in proportion to the equity owned by Transcorp, EER and SacOil. SacOil and EER will be actively involved in the processes through the Operations and Management Committees.”
According to the production sharing contract (PSC) to be executed by the parties, a work program budget of $15 million is estimated for the first phase of the exploration of OPL 281 and involves the acquisition of some 100 sq. km of 3D seismic data across the block and the drilling of at least one well.
Articles
Transcorp takes over OPL 281
Category: Business Written by Kayode Ekundayo, Lagos Hits: 1063
Transnational Corporation of Nigeria Plc (Transcorp) has taken full control of Oil Processing License (OPL) 281 with 60 per cent equity.
The reversion was sequel to the decision by Transcorp management along with its two other partners, SacOil Holdings Limited and Energy Equity Resources (EER) to become a full fledge Nigerian oil and gas upstream company with production.In the previous agreement, SacOil and EER carried 100 per cent of the costs. Transcorp was expected to post the performance bond to the Nigerian government.
Under the new scheme, Transcorp will remain the operator of OPL 281 and will pay 60 per cent of the costs to first production.
The block has a gross unrisked contingent resource of approximately 100MMboe, with additional potential in two further prospects and deeper zones.
In conformance with the change, Transcorp, according to Dupe Kupoluyi Olusola,Director, Resources would take full responsibility for the operation of the block.
OPL 281 is an onshore block covering an area of 138km² and located in the western delta region of Nigeria, 25 kilometers away from the Forcados Crude Export Terminal. From 1967 to 1970, two discovery wells were drilled. The block was reinstated to Transcorp in April 2011. Current equity ownership is Transcorp 60 per cent, EER 20 per cent and SacOil 20 per cent.
“The revised agreement is in line with Transcorp’s vision of building a pan-African energy business with strong indigenous operational capabilities; Transcorp Plc. is excited by this development and is now poised to lead the process of bringing the asset to production.”
Consequently, Transcorp she said has revised the tranches for the fees in OPL 281 for SacOil and its technical joint venture partner, Energy Equity Resources. SacOil paid $12.5 million towards the Signature Bonus on February 28, 2011, and $12 million which becomes due once the remaining conditions precedent to the farm-in agreement have been met.
The conditions, she said include perfection of title and all the necessary Nigerian government and Nigerian National Petroleum Company (NNPC) approvals in relation to the license. By this revision also, EERs 50 per cent portion of the fees will be carried by SacOil as an interest bearing loan to EER to be repaid from EERs entitlement to production in OPL 281.
Transcorp is also pleased with the revised terms as we will no longer be required to provide Transcorp with carry-on costs from the point of entry to first oil,” said Robin Vela, Chief Executive Officer, SacOil. “All costs are now carried in proportion to the equity owned by Transcorp, EER and SacOil. SacOil and EER will be actively involved in the processes through the Operations and Management Committees.”
According to the production sharing contract (PSC) to be executed by the parties, a work program budget of $15 million is estimated for the first phase of the exploration of OPL 281 and involves the acquisition of some 100 sq. km of 3D seismic data across the block and the drilling of at least one well.