Petroleum Africa
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Monday, May 6, 2013
Sirius Petroleum entered into an exclusivity off-take agreement with Glencore Energy UK Ltd. The agreement includes the provision for a conditional pre-financing facility of up to $65 million, which will be netted against the initial sales of crude oil production, for the development of the company’s near-term production assets offshore Nigeria.
Under the terms of the agreement, Sirius has the right to deliver up to 60,000 bpd of crude to Glencore, who has exclusivity to market the crude oil on behalf of the company for a period of three years. Sirius will be entitled to draw-down funds for the development of its oil assets after satisfactory approval from the technical team of Glencore, who will work together with Sirius to bring the fields into production in the near term.
Toby Hayward of Sirius Petroleum said: “Our partnership with a major multinational oil trading company is transformational for Sirius, and Glencore’s invaluable expertise marks a fundamental step in our strategy to put our initial assets into production and to build a portfolio of highly valuable oil assets.”
Sirius also said it plans to focus its initial drilling activities in Nigeria on the re-entry of the Ororo-1 well, on OML 95, which produced around 2,895 bpd of light crude oil when originally tested by Chevron in 1986.
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