Boosting Local Content: ND Western Ltd signs Historic OML 34 Sale & Purchase Agreement

On the 31st July 2012, ND Western Limited executed the Sales and Purchase Agreement (SPA) for the acquisition of 45% interests in Oil Mining Lease (OML) 34, at a historic signing ceremony with the, NNPC/ Shell/ Total and Agip JV. ND Western now becomes the beneficial holder of a 45 per cent interest in OML 34 previously held by Shell / Total and Agip, with the remaining stake held by the Nigerian National Petroleum Corporation (NNPC).

The sale, as part of the ongoing Shell Divestment Programme, is intended to enable Nigerian Independent operators gain more access to the country’s producing oil and gas assets, thereby owning some respectable oil and gas reserves and resources, to help grow domestic upstream capacity. In this specific case oil and gas production.

The signing marked a major milestone in the development of the Nigerian oil and gas sector, and will tremendously enhance Nigerian content in production, given that ownership of the block is now in completely indigenous hands.

Dr. Layi Fatona, the Managing Director of NDEP Plc – majority shareholder of ND Western Ltd, said, ‘Way back in 1992, when our Company was founded under the Chairmanship of Late Chief Aret Adams, its key objective was to increase local participation in the Nigerian oil and gas sector. Today, with over seven hundred shareholders, several producing wells, a fully operational Mini Refinery and a completed gas processing plant now set for commissioning, I am proud to say that we are progressing towards achieving this objective. ’

‘Acquiring a 45% stake in OML 34 is a historic moment in our operations and a wonderful addition to our many achievements. It will substantially increase our reserves and will spur us on to greater things in the future.’

Dr. Fatona continued, ‘Of course, getting this far has not been an easy journey. I would like to thank all of those who worked tirelessly to make our bid for OML 34 a success. We also look forward to working with the NNPC, through the machinery of the JV, to ensure the smooth running of the block.’

ND Western Limited, a Special Purpose Vehicle (SPV) created to bid and manage the acquisition of OML 34, is comprised of Niger Delta Petroleum Resources (NDPR Ltd), the wholly owned subsidiary of NDEP Plc, Petrolin Group and Waltersmith Petroman Oil Limited. Collectively they own 45% of OML 34.

OML 34 is located in the Western Niger Delta and includes the producing Ughelli East, Ughelli West, Utorogu and the non producing Warri River Fields, as well as the Utorogu and Ughelli Gas Plants. The asset is of the utmost strategic importance to the West African sub-region, as it is a major supplier of gas for electricity generation in Nigeria and also feeds gas via the West African Gas Pipeline (WAGP) to neighbouring countries.

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