Oando Exploration and Production Limited (OEPL), a subsidiary of Oando Plc has signed a farm-in agreement with Network Exploration and Production Nigeria Limited (NEPN) for the acquisition of 40per cent participating interest in the Qua Iboe field located in Oil Mining Lease (OML) 13.
The two companies recently signed all agreements relating to the transaction and have also filed an application with the Department of Petroleum Resources (DPR) for the consent of the Minister of Petroleum Resources.
Upon the Minister’s approval, Oando would have acquired a 40per cent participating interest in the Qua-Iboe field and would be designated the Financial and Technical Services Partner.
Head of Corporate Communications, Oando Plc, Mr. Meka Olowola said in a statement yesterday that by its position as the Financial and Technical Services partner, Oando would be delegated to perform some of the technical and project management duties and obligations of the operator in the development of the Qua Iboe field.
The field, which is in Shell Petroleum Development Company of Nigeria (SPDC) OML 13 was awarded to NEPN as part of the 2003 Marginal Field Round.
Located onshore near the mouth of the Qua Iboe River in Akwa Ibom state, the acreage is about 2 kilometres from Mobil Producing Nigeria (MPN) Qua Iboe Terminal. Chief Executive Officer of OEPL, Mr. Pade Durotoye, said the asset, which is estimated to contain 11.3million barrels of proven reserve, would double the company’s reserve base.
“We are excited that the post-drilling mapping along with new seismic interpretation supports technical and economic producibility of the asset. Our selection as the technical partner further underscores our world class asset development and project delivery capabilities,” he said.
Group Chief Executive of Oando Plc, Mr. Wale Tinubu said the strategic acquisition was consistent with the company’s aspiration to expand its exploration and production portfolio with a balanced mix of producing or near term assets and organic growth.
“The Qua Iboe field will be the third Marginal Field with pre-existing Proven Undeveloped Reserves in Oando’s portfolio. Subject to all regulatory approvals, our immediate objective is to fast-track the development programme towards achieving early production thereby enhancing stakeholder value,” he said.
Three wells, Qua Iboe – 1, Qua Iboe – 2 and Qua Iboe – 3 have been drilled in the field, with Qua Ibo – 1 well, drilled by SPDC in 1960.
In March 2011, Netherland and Sewell Associates Incorporated (NSAI), a foremost oil and gas reserves certification company, completed a reserves certification study on the Qua-Iboe field.