Oando Exploration and Production Limited (OEPL), and its local content vehicle (LCV) partner, Arc Oil and Gas, under the umbrella of Alliance Oil Producing Nigeria Limited, signed a joint operating agreement (JOA) with Nigerian Agip Oil Company (NAOC).
The agreement was on oil prospecting license (OPL 282), which was awarded by the Federal Government during the 2005 bid round.
Oando, as part of the LCV has a 40 percent interest in Alliance Oil Producing Nigeria Limited, which translates to a four percent non-operating interest in the bloc, while Nigerian Agip Oil Company has a 90 percent stake and is the operator of the bloc. This signing truly embodies the aim of the government for the local content vehicle being that indigenous companies can fully participate in the upstream industry.
Also, a production sharing contract has been signed between the Nigerian National Petroleum Corporation (NNPC), Nigerian Agip Oil Company (NAOC) and Alliance Oil Producing Nigeria Limited.
With this signing, it is expected that work would be accelerated by the parties involved in the development of the bloc, in a bid to further increase the country’s strategic crude oil reserves.
Eamon Labode Akinosho, managing director OEPL, after signing the agreements on behalf of Oando Exploration and Production Limited, said, "As an indigenous exploration and production company, the experience of working with Agip will have tremendous benefits on our company’s operation, especially as we aim to fully develop our competencies in operating and project management.
"Our goal at Oando Exploration and Production Limited is to be the foremost Nigerian exploration and production company operating within the country and to fully monetize all our existing assets to accelerate value creation for our stakeholders".
Currently, Oando Exploration and Production Limited has a 45 percent non-operating stake in OML 56, Obodugwa-Obodeti Marginal Oil Field, as well as a 60 percent operating interest in OPL 278, awarded during the 2005 bid round, where seismic studies are being carried out and interpreted.
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