Transnational Corporation of Nigeria (Transcorp), upstream oil and gas company SacOil and Energy Equity Resources have agreed on revised terms for their partnership in the oil processing licence 281 (OPL 281) in Nigeria’s western delta region.
The OPL 281 production sharing contract was awarded to Transcorp during the Nigerian Government’s mini bid round in 2006, and SacOil and Equity Energy Resources each acquired a 20% interest in the onshore licence last year.
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The new revised terms were initiated by Transcorp because of a change of control in the company.
Under the new terms, the farm-in fees for South Africa-based SacOil and its technical joint venture partner, Equity Energy Resources, have been reduced to $24.5m from $32.5m.
Pursuant to the change, Transcorp will take full responsibility for the operation of OPL 281 and will pay 60% of the CAPEX costs to first production, as opposed to SacOil and EER carrying 100% of the costs as previously agreed.
All costs will be carried proportionately to the equity owned by Transcorp, SacOil and Equity Energy Resources.
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By GlobalDataTranscorp CEO Obinna Ufudo said: "The revised agreement is in line with Transcorp’s vision of building a pan-African energy business with strong indigenous operational capabilities. We are now poised to lead the process of bringing the asset to production."
Transcorp said it aims to become a leading Nigerian indigenous oil and gas upstream company with production.
OPL 281 is an onshore block which covers an area of 138km2.
