Aradel Energy Limited has stepped up asset purchases by acquiring 100 per cent interest in the Olo and Olo West marginal fields from TotalEnergies EP Nigeria Limited and the Nigerian National Petroleum Company Limited (NNPC).
This, it said, was to boost its production portfolio in Nigeria’s marginal field space.
Aradel Holdings Plc said the acquisition was completed for a consideration of $16 million, plus $3.5 million of deferred and conditional payments.
The Olo and Olo West marginal fields are located within former oil mining lease (OML) 58, in the Eastern Niger Delta, 80 kilometres northwest of Port Harcourt, Rivers State. The Nigerian integrated energy company said the Petroleum Mining Lease (PML) for Olo and Petroleum Prospecting License (PPL) for Olo West would be issued after the payment of relevant ministerial consent fees and completion of approved Field Development Plans (FDPs) within designated timeframes.
According to the company’s statement, the addition of Olo and Olo West Marginal fields to Aradel’s portfolio of assets is a significant inorganic growth milestone in furtherance of the company’s vision and long-term strategy to provide sustainable energy solutions that support economic growth.
Commenting on the announcement, Aradel’s MD/CEO, Adegbite Falade said: “The acquisition of Olo and Olo West Marginal Fields are a major step in our journey of promoting energy security in Nigeria 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 (NUPRC) in supporting this acquisition, within the framework of the Petroleum Industry Act (PIA). We also want to commend the NNPC and TotalEnergies for their commitment to grow Nigeria’s oil and gas production, even from marginal fields.”
Aradel operates through its subsidiaries and an affiliate company, Aradel Energy Limited (100 per cent), a wholly owned subsidiary of Aradel Holdings, as well as the Operator of the Ogbele and Omerelu Fields; Aradel Gas Limited (100 per cent), a wholly owned subsidiary established to pursue investment opportunities in the gas sector.
The group also has Aradel Investments Limited (100 per cent), also a wholly owned subsidiary established to hold and manage the group’s non-oil and gas assets; Aradel Refineries Limited (95 per cent), an independent operating midstream entity, underscoring its commitment to attaining energy independence in Nigeria.