Petroleum Africa
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Monday, April 25, 2016
SacOil and Energy Equity Resources (EER) signed a MoU to explore oil and gas opportunities in Nigeria. The partners have been evaluating a number of opportunities that could provide sustainable revenue returns.
In addition the pair were awarded a 12-month term contract for the purchase of Nigerian crude by NNPC. Toward that end SacOil and EER formed a JV company, SacOil Energy Equity Resources Ltd (SEER). SEER is the contracting party to the agreement for the sale and purchase of Nigerian crude.
The agreement provides SEER with the right to acquire crude oil from NNPC for onward sale. The amount of offtake by SEER is dependent on the aggregate crude production in Nigeria and the prevailing global oil price. The revenue generated from the sale of the crude allocation will contribute meaningful income to SacOil and will support SacOil’s growth and investment strategy across the oil and gas value chain on the African continent.
Commenting on the Crude Allocation, SacOil’s CEO Dr Thabo Kgogo said: “This announcement is aligned with our previously communicated strategy to focus on cash generative, income producing activities in both upstream, refining and downstream. Nigeria is a prolific hydrocarbon nation and the largest exporter of crude oil on the African continent. We are pleased to have secured this crude allocation for trading as it provides us with a structured and measured exposure to this attractive market. We look forward to working with EER and the NNPC in future opportunities in the Nigerian oil and gas sector.”
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