The Omerelu Farm Out Agreement between Niger Delta Petroleum Resources Ltd (NDPR) and the NNPC/Chevron JV has been executed by all parties.
In this latest milestone attainment for the Company, NDPR has become the farmee of the Omerelu Field, located in OML 53, and is now a Marginal Field Operator with two assets. Omerelu has 13MM bls STB (P50) and ultimate gas recoverable of 8 Bscf, which will significantly augment NDPR’s booked reserves and future (short to medium term) production output.
NDPR was granted a right of first refusal of the Omerelu Field, at the same time that it negotiated and executed the Ogbele Field Farm Out Agreement (FOA) in 2000. The said right could be exercised only if and when Omerelu Field was declared a marginal oil field by the NNPC/Chevron JV. Six years ago, NDPR first exercised that right and after a protracted and painstaking period of negotiations between all parties including the DPR, Omerelu is now an asset of the Company. The process of formal transfer of the Omerelu Field to NDPR Ltd has already begun.
Dr. Layi Fatona, Managing Director of NDEP Plc which wholly owns NDPR Ltd, said: ‘With the Agreement now firmly in our possession, NDPR Ltd has a new lease of life. An exciting time lies ahead. As we work towards First Oil, we will draw from the lessons learnt in our journey as pioneers of marginal field development in Nigeria; not least the co-option of host communities through the Host Community Development & Environment Trust and the importance of working in an environmentally friendly manner.’
‘Located to the north east of our existing Ogbele asset, and with adequate oil and gas reserves to justify a field development plan, Omerelu is a very welcome addition to the Company. I would like to thank all who have supported the processes leading to the eventual execution of the Agreement.’