Tuesday, September 24, 2019

Lekoil Acquires Interest in Niger Delta Basin

August 26, 2019

Image: Lekoil

Nigeria and West Africa-focused oil and gas exploration and development company Lekoil has agreed to acquire, subject to the receipt of the required consents, a 45% participating interest in the production sharing contract (PSC) in relation to the oil prospecting licence (OPL) 276.

The PSC is acquired by Lekoil 276 Limited, which is a 100 per cent. owned subsidiary of Lekoil Nigeria, covers a territory located onshore in the eastern Niger Delta basin.

The agreed acquisition, from Newcross Petroleum, is for a total staged consideration of US$5million. Lekoil 276 will also enter into an Interim Governance Agreement with Newcross and Albright Waves Petroleum Development setting out the terms on which Lekoil 276 will provide technical support to the PSC.

The Acquisition is consistent with the Company’s continuing strategy to assemble a balanced portfolio of oil and gas interests, which already include production (Otakikpo), appraisal (OPL310) and high impact exploration assets in known basins (OPL325).

The Licence is covered by approximately 150 sq. km of 3D seismic, shot in 2008 by BGP Inc., a subsidiary of China National Petroleum Company (CNPC), as well as various 2D seismic surveys.  

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