Nigerian oil producing company Shoreline Natural Resources has signed an agreement with international energy and commodity trading group, Vitol, for a $530 million to fund the development of Nigerian onshore oil block OML 30.
The Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), holds 55% stake in the lease.
Output from OML 30, which contains 11 fields, is one of the assets NPDC is banking upon to raise its net oil production to 300,000 b/d by end of 2018.
The agreement provides that Vitol in conjunction with local and foreign credit agencies, will provide the money to fund the drilling campaign in OML 30 aimed at doubling production from the acreage to 100,000bd by end of this year.
Vitol, in exchange, will be entitled to lift about 50,000 barrels per day of oil produced from OML, an official of the Shoreline informed TheCable Petrobarometer.
“The agreement was finalised on Thursday, and it gievs us the flexibility to be abel to continue on our existing financing deals with creditors to provide funding for the oil field,” the offficial said.
Shoreline in partnership with its foreign partner the UK-listed Heritage Oil , holds 45% in in OML 30, one of the numerous onshore oil blocks sold by Shell in a major divestment programme embarked upon by the Anglo Dutch company from onshore Niger Delta due to unrest since 2010.
Shoreline had previously arranged a five-year, $500 million refinancing package, coordinated by Standard Bank and involves a syndicate of three Nigerian banks — First City Monument Bank, Ecobank Nigeria Ltd. and Fidelity Bank.