SacOil gets 20 percent interest in OPL 233 off Nigeria

SacOil, the African independent upstream oil and gas company, has announced the assignment of 20% equity in Oil Prospecting Licence 233 offshore Nigeria.

The assignment of the participating interest was granted and authorised by the Nigerian National Petroleum Corporation (“NNPC”) as per the submitted Deed of Assignment under the OPL 233 Production Sharing Contract. This perfects title of the Company’s 20% working interest in OPL233 and will allow the Company to start a broader and more proactive work programme over the asset.

Accordingly, the assignment of the participating interest is a milestone in the Company’s evolution and is the first asset over which the Company has perfected title in Nigeria. The focus now is to continue the progress made on the assets by working in collaboration with the joint venture partners to deliver reserves and production.

OPL 233 is an offshore oil block that is located in the shallow marine area of the prolific Niger Delta region. It encompasses an area of approximately 126 square kilometres and is located in water depths ranging from 3 to 10 metres.

As reported previously, SacOil and its joint venture partners have started operations for the acquisition of 3D Seismic Ocean Bottom Cable survey, with mobilisation of equipment for the survey completed. Following a number of operational delays in the course of mobilisation, the 3D OBC acquisition work is expected to start immediately, with completion scheduled for the end of October 2014, subject to operational contingencies and weather related downtime. The 3D seismic data will provide valuable subsurface information relevant for the quantification of the licence’s resource potential, as well as the selection of optimal drilling locations.

Commenting on the official award of the participating interest, Dr Thabo Kgogo, SacOil CEO said: “This is an important milestone in the history of the Company which reflects on our commitment to progress our assets and ensure the growth of the existing portfolio. OPL233 fits with our strategy of acquiring and exploiting assets with discovered hydrocarbons. This award now moves us to the next phase of unlocking the resource potential and delivering production.”