Business
Seplat takes over operatorship of OML53 and OML55
Seplat takes over operatorship of OML53 and OML55.
About this update from Seplat Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5171N SEPLAT Petroleum Development Co PLC 29 January 2016 \n\nSeplat takes over operatorship of OML 53 and OML 55\nLagos and London, 29 January 2016: Seplat Petroleum Development Company Plc (\"Seplat\" or the \"Company\"), a leading Nigerian indigenous oil and gas company listed on both the Nigeria Stock Exchange and London Stock Exchange, today announces that the Supreme Court of Nigeria has delivered its judgement in favour of Seplat and Chevron Nigeria Limited (\"CNL\") in a litigation brought against both parties by Brittania-U Nigeria Limited (\"Brittania-U) that had to date prevented the full transfer to Seplat of a 40.00% working interest in OML 53 and effective 22.5% working interest in OML 55 (held through 56.25% ownership of the share capital of Belemaoil Producing Limited) that the Company had acquired from CNL in February 2015. \n\"We are naturally very pleased with today's ruling, not least because it means we are now free to deploy our proven operating expertise to realise the significant reserve, production and value potential these blocks hold. To give an idea of scale, we estimate these blocks to hold recoverable volumes of around 200 million barrels of oil equivalent net to Seplat, a material volume by any standard and one which has now been unlocked for us,\" said Austin Avuru, Seplat's Chief Executive Officer. \"OML 53 fits neatly within our strategy of securing, commercialising and monetising natural gas in the Niger Delta to supply the rapidly growing domestic market and will further reinforce our position as a preeminent supplier of gas in Nigeria. OML 55 provides us with a number of attractive opportunities to boost oil and gas output, and is consistent with our strategy of prioritising assets that offer near-term production growth, cash-flow and reserve replacement potential in the onshore and shallow water offshore areas of Nigeria,\" he added. \nBackground\nOn 5 February 2015 the Company announced that it had acquired a 40.00% working interest in OML 53 from CNL. Simultaneously the Company also announced that it had concluded negotiations to purchase 56.25% of the share capital of Belemaoil Producing Limited (\"Belemaoil\"), a Nigerian special purpose vehicle that had completed the acquisition of a 40.00% interest in the producing ...