The Olo and Olo West marginal oilfield will be acquired by Aradel Energy Resources, one of Nigeria’s top integrated indigenous energy businesses, for a total price of $19.5 million.
Aradel’s production capacity is anticipated to increase substantially upon the purchase of the Olo and Olo West Fields from TotalEnergies EP Nigeria and Nigerian National Petroleum Company Limited (NNPC), solidifying the company’s position in the Nigerian oil and gas sector.
Aradel claims that upon the timely execution of approved field development plans and the payment of applicable Ministerial Consent costs, the Petroleum Mining Lease (for Olo) and Petroleum Prospecting License (for Olo West) will be issued.
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“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,” the company said.
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Adegbite Falade, chief executive officer and managing director at Aradel said the acquisition of Olo and Olo West Marginal Fields is a major step in our journey of promoting energy security in Nigeria through 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 (PIA),” Falade said.
He added, “We also want to commend the NNPC and TotalEnergies for their commitment to grow Nigeria’s oil and gas production, even from marginal fields”.
