Proshare Logo
   Market Date: 30-07-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Transcorp and Partners Revise Oil License Agreement

Category: Investors NewsBeat


  Read (2485)
Transcorp and Partners Revise Oil License Agreement

February 7, 2012

The Exchange was notified that, Transnational Corporation of Nigeria Plc., (Transcorp), SacOil Holdings Limited (SacOil), and Energy Equity Resources (EER) have agreed on revise the terms for their partnership in Transcorp’s Oil Processing License 281 (OPL 281) in Nigeria.

Initiated by Transcorp, the revised terms are as a result of a change of control in Transcorp. In conformance with the change, Transcorp will take full responsibility for the operation of the block in its bid to become a leading Nigerian indigenous oil & gas upstream company with production.

“The revised agreement is in line with Transcorp’s vision of building a pan-African energy business with strong indigenous operational capabilities; Transcorp Plc. is excited by this development and is now poised to lead the process of bringing the asset to production.”

Consequently, Transcorp has revised the tranches for the fees in OPL 281 for SacOil and its technical joint venture partner, Energy Equity Resources („EER‟). SacOil paid $12.5 million towards the Signature Bonus on February 28, 2011, and $12m now becomes due once the remaining conditions precedent to the farm-in agreement have been met. These conditions include perfection of title and all the necessary Nigerian government and Nigerian National Petroleum Company (NNPC) approvals in relation to the license. By this revision also, EER‟s 50 per cent portion of the fees will be carried by SacOil as an interest bearing loan to EER to be repaid from EER‟s entitlement to production in OPL 281.

Transcorp will remain the operator of OPL 281 and will pay 60 per cent of the costs to first production. In the previous agreement, SacOil and EER carried 100 per cent of the costs. Transcorp will also post the performance bond to the Nigerian government.
 

Transcorp is also pleased with the revised terms as we will no longer be required to provide Transcorp with carry-on costs from the point of entry to first oil,” said Robin Vela, Chief Executive Officer, SacOil. “All costs are now carried in proportion to the equity owned by Transcorp, EER and SacOil. SacOil and EER will be actively involved in the processes through the Operations and Management Committees.”

According to the production sharing contract (“PSC”) to be executed by the parties, a work program budget of $15 million is estimated for the first phase of the exploration of OPL 281 and involves the acquisition of some 100 sq. km of 3D seismic data across the block and the drilling of at least one well. A Competent Person’s Report issued by reserves auditing firm, AGR-TRACS International Limited, has attributed a gross unrisked contingent resource of approximately 100MMboe, with additional potential in two further prospects and deeper zones.

According to the Chief Executive Officer, of EER, “The revised commercial terms reduces its CAPEX exposure whilst improving its rate of return in the project. Furthermore, EER has a key role to play in supporting Transcorp to bring the asset to production.”
 

About Transcorp
Transnational Corporation of Nigeria Plc. (Transcorp), a company quoted on the Nigerian Stock Exchange, is a diversified conglomerate with strategic investments and core interests in the Hospitality, Agro-business and Energy sectors. Some of its more notable assets include OPL 281; Transcorp Hilton Hotel, Abuja; Transcorp Metropolitan Hotel, Calabar; and Teragro, the agribusiness subsidiary operating a fruit juice concentrate plant in Benue State, Nigeria.
 

About SacOil
SacOil is a South African-based JSE- and AIM-listed Exploration & Production Company focused exclusively on  Operations in Africa, where it has a competitive advantage at the point of entry. To date, it has operations in the DRC (and has since partnered with Total), Nigeria and South Africa and continues to evaluate a number of opportunities to secure new value accretive acreage in other established and prolific African hydrocarbon basins.
 

About EER
Energy Equity Resources Limited (EER) is an established Oil & Gas Exploration and Production company headquartered in London with an operating office in Lagos and operations and assets in Nigeria. EER has interests in several assets in Nigeria and the Nigeria/ Sao Tome Joint Development Zone. EER has a unique mixture of private Nigerian, International and British institutional shareholders.
 

About OPL 281
OPL 281 is an onshore block covering an area of 138km² and is located in the western delta region of Nigeria, 25 kilometers away from the Forcados Crude Export Terminal. From 1967 to 1970, two discovery wells were drilled. The block was reinstated to Transcorp in April 2011. Current equity ownership is Transcorp 60 per cent, EER 20 per cent and SacOil 20 per cent.

 

For more details contact;
Dupe Kupoluyi Olusola
Director, Resources
Transnational Corporation of Nigeria Plc


http://www.proshareng.com/quote/TRANSCORP

 



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Investors NewsBeat

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint