Page 7 - AfrOil Week 26 2022

AfrOil PIPELINES & TRANSPORT AfrOil

Marginal fields are typically assigned to local companies (Image: Nigeria Department of Petroleum Resources)

The licensing comes despite a court ruling in and only 17 of these are currently producing.
May that restrained Abuja from issuing licences Komolafe described the most recent selec-
for marginal oilfields in the oil-rich Niger Delta tion process as more transparent than before,
because of a pending suit by community leaders. with Beneficial Ownership (BO) requirements
Marginal fields are smaller blocks of oil meaning that companies were forced to fully
located onshore and in shallow waters. Accord- disclose ownership information.
ing to Gbenga Komolafe, head of the Nigerian Nigeria is Africa’s biggest oil producer, and
Upstream Petroleum Regulatory Commission revenues from the industry are key to the econ-
(NUPRC), giving licenses for these marginal omy. Oil accounts for over 80% of exports, a
fields was a vital task for the agency. third of banking sector credit, and half of gov-
The NUPRC has noted that just 30 oilfield ernment revenues, according to the World
licences were awarded between 1999 to 2010, Bank. ™

Eco Atlantic to acquire another

6.25% in Block 3B/4B via Azinam

SOUTH AFRICA UK-BASED Eco (Atlantic) Oil & Gas has
arranged to increase its equity stake in Block
3B/4B offshore South Africa through a farm-
out deal involving its wholly-owned subsidiary
Azinam.
The company outlined its plans in a state-
ment dated June 27, explaining that Azinam had
signed a farm-out agreement that would allow
it to acquire an additional 6.25% participating
interest in the block from the Lunn Family Trust,
a shareholder in Ricocure.
It did not reveal the financial terms of the
deal or say when the parties hoped to conclude
the transaction.
However, it did note that the companies
would need to secure approval from the govern-
ment of South Africa and from the TSX Venture
Exchange, where Eco Atlantic lists its shares. Block 3B/4B is in the Orange basin (Image: Eco Atlantic)
Following the conclusion of the deal, equity
in Block 3B/4B will be split between Africa Oil according to other sources, is owned by Thabang
Corp. (Canada), the operator, with 20%; Eco Khomo, a South African businessman who also
Atlantic (via Azinam), with 26.25%; and Rico- controls a company known as Sungu Sungu
cure, with 53.75%. Cape Town-based Ricocure, Petroleum.

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