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The West African Gas Pipeline (WAGP), which pumps natural gas from the Escravos region of the Niger River Delta in Nigeria to Ghana, Togo and Benin, crosses the north-west corner of the licence area.
The block contains both crude oil and wet gas. Osamede Okhomina, the CEO of ADM, described OML 113 as a valuable asset, saying: “OML 113 is well known to us and it is a fantas- tic asset that covers the spectrum of field types from current oil production to several appraisal plays. It is also very wet-gas rich which provides the potential for the operator to be able to bring into the market, alongside dry gas, resources like condensate and LPG.”
ADM is one of five shareholders in the off- shore block. The others are EER, New Age Exploration Nigeria, Pan Petroleum Aje and Yinka Folawiyo Petroleum. The SPA will reduce EER’s participating stake in the project from 9% to 6.75%; it will also cut the company’s revenue interest and cost-bearing interest from 16.8% to 12.6% and from 22.5% to 16.9% respectively.
According to Okhomina, who also serves as a non-executive director of EER, other investors may join the project in the future. “As envisaged under the intended strategic alliance signed ear- lier this month, we have proposed this project as one Trafigura may consider investing in. We look forward to updating the market further in due course,” he said.
OML 113 includes the Aje oilfield (Image: Jack Resources)
COPL to borrow from CEO
to fund work at Nigeria’s OPL 226
NIGERIA
THE head of Canadian Overseas Petroleum Ltd (COPL) has agreed to help fund the company’s operations in Nigeria.
In a statement, the Calgary-based firm said that it had entered into a secured promissory note with its president and CEO, Arthur Mil- holland. The note provides for COPL to bor- row the sum of CAD200,000 ($150,340) from
Milholland and carries an annual interest rate of 10%. The company will have to repay the loan in six months.
COPL intends to use most of the money to cover development operations and financial planning for the OPL 226 project. It may also use part of the loan to fund general working cap- ital, the statement noted.
OPL 226 includes the NOA structure (Image: COPL
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