Aradel Holdings Plc, through its subsidiary Aradel Energy Limited, has signed a sale and purchase agreement to acquire the Olo and Olo West marginal oil fields from TotalEnergies EP Nigeria Limited and the Nigerian National Petroleum Company (NNPC) Limited. The acquisition was completed for a total consideration of $16 million, with an additional $3.5 million in deferred and conditional payments.
Details of the Acquisition
- Location: The Olo and Olo West marginal fields are situated within a former oil mining lease (OML) 58, located in the Eastern Niger Delta, approximately 80 kilometres northwest of Port Harcourt, Rivers State.
- Regulatory Steps: The issuance of the Petroleum Mining Lease (PML) for Olo and the Petroleum Prospecting License (PPL) for Olo West will follow the payment of relevant ministerial consent fees and the completion of approved Field Development Plans (FDPs) within specified timelines.
Strategic Significance
Aradel Holdings views the acquisition as a significant milestone in expanding its portfolio and promoting sustainable energy solutions. The company’s CEO and Managing Director, Mr. Adegbite Falade, described the deal as a major step towards enhancing Nigeria’s energy security through organic and inorganic growth.
Falade thanked the Ministers of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their support in facilitating the acquisition under the Petroleum Industry Act (PIA). He also commended NNPCL and TotalEnergies for their commitment to growing Nigeria’s oil and gas production, including from marginal fields.
Company Overview
Aradel Holdings operates through several subsidiaries:
- Aradel Energy Limited: A wholly-owned subsidiary of Aradel Holdings, also the operator of the Ogbele and Omerelu Fields.
- Aradel Gas Limited: Focuses on investment opportunities in the gas sector.
- Aradel Investments Limited: Manages the group’s non-oil and gas assets.
- Aradel Refineries Limited: An independent operating midstream entity with a 95% ownership stake.
Stock Performance
Aradel Holdings, which is listed on the NASD OTC Exchange, has seen its stock price increase by 504%. Thursday, August 29, 2024, the stock closed at N6,739.55 per unit.
This acquisition strengthens Aradel’s position in Nigeria’s energy sector and supports its commitment to achieving energy independence.
