Acquisitions and Divestitures: News for Oil & Gas and Hydrocarbon Industries  Membership Services
Gulf Oil and Gas grow your business
Home News Events Projects Tenders Unconventionals Community | My Account
Products and vendors Services and providers Jobs

Acquisition of Interest in Oil Block OPL 2012 in Nigeria

Source: www.gulfoilandgas.com 9/12/2011, Location: Africa

Share |

The Blacksands Pacific Group, Inc including affiliates and subsidiaries announces that it has entered into an Agreement with Sigmund Oilfields Limited and Grasso Consortium consisting of Grasso Nigeria Limited, Oil and Gas Mission Limited and Eurafric Energy Limited for the development of the leased acreage OPL 2012.

OPL 2012 is located Offshore Niger Delta, in shallow waters between 50 and 100m, within a highly prospective zone bordered by Shell's HD field to the northwest, NNPC's Agbara field to the west, several oil and gas discoveries of Addax to the south, H1 field of Sunlink to the west and JK Field of Shell to the north.

Background
Blacksands Pacific extends its indigenous partnership in Nigeria by executing an agreement with Sigmund, to jointly explore, develop and produce from the OPL 2012 ("2012"). Under the terms of the farm-in ("participation") agreement with Sigmund Oilfields, Blacksands Pacific as Joint Operator, technical and financial partner will acquire 40 percent equity and legal interest with an effective 60 percent economic interest (subject to gross volumes lifted). Blacksands Pacific has undertaken to fund 100% of the work program.

The Oil Prospecting Lease Block 2012 was awarded to GRASSO Consortium consisting of Grasso Nigeria Limited, Oil and Gas Mission Limited and Eurafric Oil field Limited. The consortium transferred 84% ownership of the OPL Block 2012 to Sigmund Oilfield Limited.

As the Joint Operator and financial partner, Blacksands Pacific will be responsible for the development of OPL 2012 and will be responsible for 100% of Working Interest by providing the required CAPEX funding and technical expertise for the exploration, appraisal, development and production of hydrocarbons (including drilling and mining activities) within OPL Block 2012, which includes satisfying the required regulations for converting the Block to an Oil Mining License (OML).

The near-term work program will consist of:
Payment of the statutory signature bonus to the Department of Petroleum Resources for the Oil Block No. OPL 2012 and payment of farm-in fees to Sigmund Oilfields Limited and the Grasso Consortium.

Commence negotiations of the Production Sharing Contract ("PSC") with the Department of Petroleum Resources in Nigeria together with Sigmund Oilfields Limited and Grasso Consortium.

As part of the Production Sharing Contract "PSC" negotiation(s), the unitization of the Agbara Field in which reservoir straddles between the OPL Block 2012 and the Oil Mining Lease (OML) Block 116 operated by AGIP/ ENI will also be negotiated. Blacksands Pacific and partners with the involvement of the Department of Petroleum Resources will complete the unitization negotiation(s), agreement(s) and documentation on the Agbara field.

In addition to the signature bonus and farm-in fees, Blacksands Pacific will also invest approx USD$215m into the Phase I development of the OPL Block 2012 and the cost recovery for such investment will be from hydrocarbon produced. Mean recoverable reserves from the OPL Block 2012 at P50 is estimated at 385.60 MMBO for (100% Oil), 96.40 MMBO for (50% Oil) and 1.55 TCF for (100% Gas), 387.80 BSCF for (50% Gas), there are also 8 prospects identified within the Block. Presently, part of the OPL Block 2012 is in the exploitation phase, whereas the remainder of the block is at the exploration and development phase.

Acquisitions and Divestitures News in Nigeria >>

BP to Hand Back 2 Exploration Blocks to Indonesia on Risk Concerns
  Indonesia >>  1/30/2015 - UK-listed energy giant BP has decided to relinquish two exploration blocks to Indonesia, after a survey of the blocks found them to be high risk, the ...
Murphy Closes Sale of 30% of its Malaysian Oil & Gas Assets to Pertamina
  Malaysia >>  1/30/2015 - Murphy Oil Corporation announced that its wholly owned subsidiaries, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd. (collectively Murphy...

Total Awarded 10% in the New 40-Year ADCO Concession
  United Arab Emirates >>  1/29/2015 - Total has signed a new 40-year onshore concession agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi (United Arab Emirates) and ...
Conclusion of Formal Sale Process & Operational Update
  Russia >>  1/27/2015 - Following the announcement by the Company of a formal sale process on 5 June 2014 a number of proposals were received from interested parties. However...

Petro-Victory Energy Dispute with President Energy
  Paraguay >>  1/23/2015 - Petro-Victory Energy Corp. has received two notices of default from President Energy PLC, the Operator of the Pirity Concession, both of which the Com...
Egypt Signed 3 New Agreements with $ 47m
Egypt >>  1/22/2015 - Eng. Sherif Ismail, Minister of Petroleum and Mineral Resources, Signed three new agreements to explore for oil and natural gas in the regions of West...



Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 |

More News

Oil & Gas Projects in Nigeria >>

Oil & Gas Companies in Nigeria >>

Related Links

Countries Quick Links

AO BJ CD CG CI CM DZ EG ET GA GH GN GQ KE LR LY MA MG ML MR MZ NA NE NG RW SC SD SL SN SO TD TN TZ UG ZA ZM
Gulf Oil and Gas B2B marketplace:   About -  Advertising -  Competitive Intelligence -  Talent Solutions -  Membership Services Follow us on Facebook
Copyright Universal Solutions All rights reserved. Privacy Policy. - Contact Us  Gulfoilandgas rss feed