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NDPR grabs stake in Nigeria onshore play in Chevron-NNP farm-out agreement

06th August 2014

The Omerelu farm-out agreement between Niger Delta Petroleum Resources (NDPR) and the NNPC/Chevron joint venture has been executed by all parties, with NDPR now having operatorship of two marginal onshore assets

NDPR grabs stake in Nigeria onshore play in Chevron-NNP farm-out agreement
Omerelu has 13 million barrel of oil in place and ultimate gas recoverable of eight billion square cubic feet, which will significantly augment NDPR’s booked reserves and future (short to medium term) production output

In this latest milestone attainment for the Nigerian firm, NDPR has farmed into in the Omerelu Field, located in OML 53, and is now a marginal field operator with two assets.

NDPR was granted a right of first refusal of the Omerelu Field, at the same time that it negotiated and executed the Ogbele Field Farm Out Agreement (FOA) in 2000.

The said right could be exercised only if and when Omerelu Field was declared a marginal oil field by the NNPC/Chevron JV.

“With the agreement now firmly in our possession, NDPR Ltd has a new lease of life,” said Layi Fatona, managing director of NDEP which wholly owns NDPR. “An exciting time lies ahead. As we work towards first oil, we will draw from the lessons learnt in our journey as pioneers of marginal field development in Nigeria.”

“Located to the north east of our existing Ogbele asset, and with adequate oil and gas reserves to justify a field development plan, Omerelu is a very welcome addition to the company. I would like to thank all who have supported the processes leading to the eventual execution of the agreement.”

Six years ago, NDPR first exercised that right and after a protracted and painstaking period of negotiations between all parties including the DPR, Omerelu is now an asset of the company.

The process of formal transfer of the Omerelu Field to NDPR has already begun.

Omerelu has 13 million barrel of oil in place and ultimate gas recoverable of eight billion square cubic feet, which will significantly augment NDPR’s booked reserves and future (short to medium term) production output.

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