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 Gulfoilandgas rss feed Follow us on Facebook  Jobs 
Products and vendors Services and providers Oil & Gas Software and publications

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 >>

Athabasca Oil Corporation Announces Closing of the Dover Transactio
  China >>  8/29/2014 - Athabasca Oil Corporation announces that it has closed the sale of its 40% interest in the Dover oil sands project to Phoenix Energy Holdings Limited,...
CGX Obtained Order to Uphold Injunction against Repsol
  Guyana >>  8/28/2014 - CGX Energy Inc. through its wholly-owned subsidiary CGX Resources Inc. obtained an order from the High Court of the Supreme Court of Judicature in Guy...

Chariot Granted New Licences for Central & Southern Blocks
  Namibia >>  8/28/2014 - Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, announces an update on its Namibian portfolio, its reposition...
Strike Energy Awarded New Cooper Basin Permit
  Australia >>  8/27/2014 - Strike Energy Limited has been successful in its application for block CO2013?B in the Cooper Basin exploration acreage release by the Government of S...

Ivanhoe Energy Confirms its Participate in Block 20
  Ecuador >>  8/27/2014 - Ivanhoe Energy Inc. provided clarification regarding certain statements contained in a news article published by El Comercio in Ecuador earlier this w...
Shell Sells Some Nigeria Oil Fields
  Nigeria >>  8/27/2014 - Shell has sold some of four oil fields up for grabs in Nigeria, it said, as the oil and gas company pushes ahead with global asset sales to cut costs....



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 E-Marketplace - Promote your Business - About Us
Copyright Universal Solutions All rights reserved. Privacy Policy. - Contact Us