SEPLAT Petroleum Development Co. Plc has completed the acquisition of interests in OML 53 and OML 55 onshore Nigeria.
SEPLAT has completed the acquisition of a 40% working interest in OML 53, onshore northeastern Niger Delta from Chevron Nigeria Ltd. NNPC holds the remaining 60.00% interest in OML 53. The upfront acquisition cost to SEPLAT, after adjustments, is $254.6 million.
The company estimates net recoverable hydrocarbon volumes attributable to its 40% working interest to be about 151 MMboe. SEPLAT has been designated as operator of OML 53 pursuant to the joint operating model approved by the Nigerian minister of petroleum resources.
OML 53 covers an area of about 1,585 sq km (612 sq miles) and is located onshore in the northeastern Niger Delta. The Jisike oil field, located in the northwestern area of the block, is currently the only producing field on OML 53. Current gross production from Jisike is about 2,000 bbl/d of oil.
The block also contains the large undeveloped Ohaji South gas and condensate field. There is also shallow oil development potential at Ohaji South that could be pursued as a separate, standalone project in the near term.
SEPLAT also has concluded negotiations to purchase 56.25% of the share capital of Belemaoil Producing Ltd., a Nigerian special purpose vehicle that has completed the acquisition of a 40% interest in the producing OML 55, located in the swamp to coastal zone of south eastern Niger Delta, from Chevron Nigeria Ltd. NNPC holds the remaining 60% interest in OML 55.
SEPLAT’s effective working interest in OML 55 as a result of the acquisition is 22.5%. The cost for SEPLAT to acquire its 22.5% effective working interest in OML 55 is $132.2 million. The company also has advanced certain loans of $132.9 million to the other shareholders of Belemaoil to meet their share of investments and costs associated with Belemaoil. Consequently, the upfront cash outlay to SEPLAT after adjustments is $265.1 million.
The company estimates net recoverable hydrocarbon volumes attributable to its 22.5% effective working interest to be about 46 MMboe. Current gross production at OML 55 is about 8,000 bbl/d of oil. Pursuant to the joint operating model approved by the minister, SEPLAT has been designated operator of OML 55. The company also will act as technical services provider to Belemaoil.
OML 55 covers an area of about 840 sq km (324 sq miles) and is located in the swamp to shallow water offshore areas in the southeastern Niger Delta. The block contains five producing fields (Robertkiri, Inda, Belema North, Idama and Jokka). The majority of production on the block is from the Robertkiri, Idama and Inda fields.
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