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Image courtesy of Chevron Nigeria.

Nigeria’s Seplat Petroleum Development purchased stakes in two onshore Nigeria blocks Thursday from Chevron Nigeria for a combined $391.6 million.

Seplat acquired a 40 percent stake in the onshore Nigeria block OML 53 from Chevron Nigeria for $259.4 million.

OML 53 covers 611 square miles and is located onshore in the north eastern Niger Delta.

The Jisike oil field, located in the northwestern area of the block, is currently the only producing field in OML 53.

Current gross production from Jisike is 2,000 barrels of oil per day, with Seplat netting 800 bopd from its 40 percent stake.

The company estimates net recoverable resources attributable to its 40 percent stake OML 53 is 51 million barrels of oil and condensate and 611 billion square cubic feet of gas.

“In particular, this transaction fits neatly with our strategy of securing, commercializing and monetizing natural gas in
the Niger Delta with a view to supplying the rapidly growing and evolving domestic market,” Seplat CEO Austin Avuru said.

Seplat also purchased a 56.25 percent stake in Belemaoil Producing, a Nigeria-based special purpose vehicle that holds a 40 percent stake in the producing license OML 55.

Seplat will hold a 22.5 percent interest in OML 55 after its acquisition of Belemaoil closes.

The company will pay $132.2 million for its stake in OML 55 and operate the block.

OML 55 currently produces about 8,000 barrels of oil per day.

Seplat will also provide technical services to Belemaoil.

The Nigerian National Petroleum Corporation holds the remaining 60 percent stake in OML 55.