- Category: Business and Economy
- Published on Tuesday, 03 July 2012 09:07
- Written by Admin
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The United Kingdom energy explorer, Heritage and Shoreline Natural Resources Limited have reached an agreement with Shell Petroleum Development Company of Nigeria Limited (SPDC), Total E&P Nigeria Limited and Nigeria Agip Oil Company to acquire a 45 per cent participating interest in a producing oil mining lease in Nigeria (OML 30).
Located onshore in the Delta region of the country, approximately 45 kilometres east of Warri, OML 30 covers an area of 1,095 square kilometres. The licence includes eight producing fields, associated infrastructure, and ownership and operation of a segment of the Trans Forcados Pipeline.
Shoreline is a joint venture between Shoreline Power, a leading private Nigerian energy and infrastructure company and Heritage Oil Plc, an independent upstream exploration and production company listed on both the London and Toronto stock exchanges.
The Nigerian National Petroleum Corporation (NNPC), through its subsidiary, Nigerian Petroleum Development Company (NPDC), will hold the remaining 55 per cent interest, and NPDC will also be the operator of OML 30, working in partnership with Shoreline to further develop the field.
This came as the House of Representatives Committee on Gas, who visited Shell on inspection of some projects in continuation of its oversight function at the weekend, commended the company’s investment in the gas sector.
Chief Executive Officer of Shoreline Energy International, Kola Karim, said that it is a major development for the company, taking the oil firm into the upstream oil and gas sector at such a significant time when the Nigerian government is promoting active participation from indigenous companies.
According to him, “this will strengthen our existing network of relationships with the local communities, local government and authorities in the oil producing areas of Nigeria as the company will inaugurate capacity developments and training programmes ensuring we add value and develop close relationships with local communities and other stakeholders in the delta region.”
Chief Financial Officer of Heritage Oil Plc, Paul Atherton noted that the acquisition of OML 30 is transformational for Heritage, providing a material change in production and reserves whilst pursuing our strategy of generating shareholder value.
As part of Heritage’s diversified portfolio of exploration, appraisal and development assets, he pointed out that OML 30 is expected to provide significant production and cash flow, thereby de-risking Heritage’s financial profile, and our technical expertise will provide a comparative advantage in creating additional value.
“Heritage is very excited to be participating in the development of OML 30 and entering into Nigeria . We look forward to continuing to build local relationships and partnerships with the communities in the delta region and creating a platform to build a substantial presence in Nigeria.”
Chairman of the House of Representatives Committee on Gas said “my Committee’s visit has shown that SPDC is committed to ensuring that Nigeria gets value for its investment. The Okoloma Gas Plant is excellent and we are happy for the work going on here.“
SPDC’s Managing Director, Mutiu Sunmonu recalled the company’s pioneering role in gas development in Nigeria more than 40 years ago adding that the oil firm has remained the only supplier of gas to the domestic market until about 1998, and continued to play a dominant role in the sector.
He however, gave an example of the Afam Power Plant, which he said, is the biggest facility of its kind built in Nigeria by a private entity.
According to him, “Gas projects don’t come easily or quickly. It takes about four to five years for a typical project to progress from concept to commissioning, so we need a safe and secure environment along with the right incentives to plan and mature these initiatives.”
General Manager Onshore/Offshore Projects of the company, Toyin Olagunju said SPDC commissioned three gas projects between 2008 and 2010 alone. These are Okoloma Gas Plant, Gbaran – Ubie Integrated Oil and Gas Development and the Gbaran Independent Power Plant Supply project. Afam VI achieved first power in August 2008 and currently contributes 650 MW to the National Grid. Okoloma Gas Plant has the capacity to supply 240 million standard cubic feet of gas per day (MMscf/d).”
The field superintendent in charge of the gas plant, Collins Amadi, said: “To fully realise the benefits of the gas plant, it is important to address low off-take by customers and repeated attacks of the gas evacuation pipelines by thieves looking for crude oil.”