Aradel Holdings Plc, a Nigerian energy company, through its subsidiary Aradel Energy Limited, has finalized a sale and purchase agreement to acquire a 100% interest in the Olo and Olo West marginal fields from TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited.
Previously part of OML 58, the acquisition was valued at $16 million, with an additional $3.5 million in deferred and conditional payments.
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Aradel announced on Thursday that the Petroleum Mining Lease for Olo and the Petroleum Prospecting License for Olo West will be granted following the payment of necessary ministerial consent fees and the completion of approved field development plans within specified timeframes.
“The addition of Olo and Olo West marginal fields to Aradel’s portfolio of assets is a significant inorganic growth milestone in furtherance of Aradel’s vision and long-term strategy to provide sustainable energy solutions that support economic growth,” Aradel’s Chief Executive Officer/Managing Director, Adegbite Falade, said.
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Falade stated that acquiring the marginal fields is a significant milestone in our efforts to enhance energy security in Nigeria through both organic and inorganic growth.
“We want to commend the unwavering commitment of the Ministers of Petroleum Resources, and our regulator – the Nigerian Upstream Petroleum Regulatory Commission in supporting this acquisition, within the framework of the Petroleum Industry Act.
“We also want to commend the Nigerian National Petroleum Company Limited and TotalEnergies for their commitment to grow Nigeria’s oil and gas production, even from marginal fields,” the CEO stated.
The Olo and Olo West Fields are situated within the former OML 58 in the Eastern Niger Delta, approximately 80 kilometers northwest of Port Harcourt, Rivers State.
A marginal field is defined as a discovered field that has remained undeveloped for at least 10 years from its initial discovery.
