For Immediate Release:

28 February, 2007

 

 

 

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, has signed a Joint Operating Agreement (JOA) with Nigerian Agip Oil Company (NAOC) on OPL 282, which was awarded by the Federal Government during the 2005 bid round.

 

Oando, as part of the Local Content Vehicle (LCV) has a 40% interest in Alliance Oil Producing Nigeria Limited, which translates to a 4% non-operating interest in the block, while Nigerian Agip Oil Company has a 90% stake and is the operator of the block. This signing truly embodies the aim of the government for the Local Content Vehicle being that of indigenous companies participating in the upstream industry.

 

Also, a Production Sharing Contract (PSC) has been signed between the Nigerian National Petroleum Corporation (NNPC), Nigerian Agip Oil Company (NAOC) and Alliance Oil Producing Nigeria Limited.

 

With the signing of the Production Sharing Contract (PSC) and the Joint Operating Agreement, (JOA) it is expected that work will be accelerated by the parties involved in the development of the block, in a bid to further increasing the country’s strategic crude oil reserves.

 

Mr. Eamon Labode Akinosho, Managing Director, OEPL, after signing the agreements on behalf of Oando Exploration and Production Limited, comments, “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“

 

He further stated that “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 monetise all our existing assets to accelerate value creation for our stakeholders”.

 

Currently, Oando Exploration and Production Limited has a 45% non-operating stake in OML 56, Obodugwa-Obodeti Marginal Oil Field, as well as a 60% operating interest in OPL 278, awarded during the 2005 Bid Round for which seismic studies are being carried out and interpreted.

 

As an indigenous upstream company, OEPL is seeking to become a major player in exploration and production in Nigeria and is actively seeking partners to enable it increase its competencies in the upstream oil industry in Nigeria and West Africa.

 

OEPL, a subsidiary of Oando Plc, Nigeria’s largest energy group with strategic investments in a range of energy companies across West Africa, seeks to build a portfolio of producing properties, while actively trying to increase its reserve base. The company is actively engaged and focussed on the discovery, exploration and production of oil and gas deposits in Nigeria. The addition of OEPL to the Oando Group compliments the Group’s vision of capturing margins across the entire energy value chain.

 

Oando Plc

Stallion House, 2 Ajose Adeogun Street

Victoria Island, Lagos

Phone: 01 2625857

email: [email protected]

1.      Alliance Oil Producing Company is a joint venture between Oando Exploration and Production Limited (OEPL) and Arc Oil and Gas, which owns 10% of OPL 282, with OEPL owning 4% and Arc Oil & Gas having 6%.

 

2.      Nigerian Agip Oil Company (NAOC), as operators of the oil block, owns 90% of OPL 282 which was awarded during the 2005 bid round.

 

3.      The two companies (OEPL and Arc Oil & Gas) as Alliance Oil Producing Ltd are the Local Content Vehicle (LCV) partners for OPL 282.