March 1, 2024

Norwegian oil firm confirms exit date from Nigeria’s  0ML 113 Aje field 

Olubunmi Martins

Oslo listed, Norwegian energy company, Panoro Energy ASA has confirmed 30, June 2022, definitive date to fully divest its  6.502% interest in OML 113, operated by Yinka Folawiyo Petroleum (YFP), containing the Aje field as well as a number of exploration prospects.

This was confirmed in a statement by John Hamilton, CEO of Panoro, obtained by EnergyDay on Thursday.

The licence, Oil Mining Lease 113, located on the extreme western part of offshore Nigeria adjacent to the Benin border, is one of the few Nigerian assets located outside of the volatile, but  prolific Niger Delta  basin, having a peak production track of 1,254 barrels per day.

The Panoro CEO said that the Nigerian Government gave required approvals in  January, 2022, for the sale of Panoro’s 6.502% interest in OML 113 to PetroNor E&P. thus fulfilling the last key condition precedent for the sale.

He further disclosed that, Panoro and PetroNor E&P are proceeding towards completion, including the issuance of new PetroNor E&P shares for distribution to Panoro shareholders. The long stop date for completion of the transaction has been extended to 30 June 2022.

The Norwegian firms are related as subsidiaries and had previously entered into a Sales and Purchase Agreement which ceded Technical and Management Lead roles to PetroNor.

While Panoro Energy is moving out of the Nigerian market, it has however completed plans to increase its investment presence in the exploration activities across other African countries including South African,  Equatorial Guinea ,Gabon  and Tunisia

Commenting on this, Hamilton said, “With active work programmes under-way at each of our producing assets and a planned exploration well in South Africa later in the year we are making good progress towards realising the organic growth potential of our high quality and well diversified asset base.”

“Full year 2022 average working interest production guidance is unchanged at 8,000 bopd to 9,000 bopd in 2022, of which approximately 60% is attributed to Equatorial Guinea, 25% to Gabon and 15% to Tunisia

“Panoro remains on track to achieve approximately 10,000 bopd net working interest production around year end following both the start-up of the Hibiscus/Ruche Phase 1 development offshore Gabon and activities in Equatorial Guinea, increasing to an expected rate in excess of 12,500 bopd during 2023

“Consistent with its strategy to create and deliver shareholder value, the Panoro Board is committed to sustainable shareholder returns and initiating a cash dividend at the earliest opportunity, the key determining factors being capital expenditures and timing of crude oil liftings,”

EnergyDay gathered that this latest development has now paved the way for  PetroNor E&P  (the successor company) to fully take charge of its new role as the technical and management lead to oversee the company’s next phase of gas  exploration and development on the Nigerian Aje field.