ARADEL TO ACQUIRE OLO AND OLO WEST FIELDS
- Company & Acquisition Details: Aradel Holdings Plc, an indigenous energy company, has announced that its subsidiary, Aradel Energy Limited, signed a sale and purchase agreement to acquire 100% interest in the Olo and Olo West marginal fields. These fields were previously part of Oil Mining Lease (OML) 58, and the acquisition was made from TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited (NNPC).
- Financials: The deal was completed for a total consideration of $16 million, with an additional $3.5 million in deferred and conditional payments.
- Future Plans: Aradel will receive the Petroleum Mining Lease for Olo and a Petroleum Prospecting License for Olo West after paying the required ministerial consent fees and completing approved field development plans within specified timeframes.
Strategic Importance:
- Growth Milestone: The acquisition of the Olo and Olo West fields represents a significant growth milestone for Aradel, aligning with its long-term strategy to provide sustainable energy solutions that support Nigeria's economic growth.
- Energy Security: Aradel’s CEO, Adegbite Falade, highlighted the acquisition as a major step in promoting energy security in Nigeria, combining both organic and inorganic growth strategies.
Regulatory & Industry Support:
- Regulatory Endorsement: The acquisition was supported by the Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission within the framework of the Petroleum Industry Act.
- Industry Collaboration: The NNPC and TotalEnergies were commended for their commitment to enhancing Nigeria’s oil and gas production, including from marginal fields.
Location & Definition:
- Geographical Context: Olo and Olo West Fields are located within the former OML 58 in the Eastern Niger Delta, approximately 80 kilometers northwest of Port Harcourt, Rivers State.
- Marginal Field: The article defines a marginal field as one that has been discovered but left unattended for at least 10 years from the date of its first discovery.
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