By Prospectus Mojido, in Abuja
Sterling Oil Exploration and Energy Production Company Limited (SEEPCO) has inked a Financing and Technical Services Agreement with the Nigerian National Petroleum Corporation (NNPC) for the development of Oil Mining Lease (OML) 13.
The Indian explorer, one of only two non-indigenous, independent operators in Nigeria, will serve as funding and technical partner for the development of the acreage, pumping $3.15Billion to drain the recoverable portion of the 926Million stock tank barrels (mmstb) and 5.24Trillion cubic feet (tcf) respectively of oil and gas reserves in place, over a period of 15 years.
First oil of about 7,900BOPD is expected from the project by 1 st April, 2020, while production is expected to peak at 94,000BOPD and 542MMscf/d within four years.
The terms of the deal is that the $3.15Billion, described as the “ceiling funding”, comes with a 10-year capital investment period and five years for cost recovery.
OML 13 is 100 per cent owned by the NPDC, the operating arm of NNPC, and is located in the eastern axis of the Niger Delta covering a total area of 1987km².
NNPC spokesman,. Ndu Ughamadu, says the Nigerian treasury is expected to earn over $10.2Billion in royalties and taxes from the project over the next 15 years, while NNPC would earn over $5Billion after payment of the entire financing obligation.