Adedapo Adesanya
By Adedapo Adesanya
Norwegian oil and gas exploration company, PetroNor E&P, has announced a binding agreement with New Age (African Global Energy) to acquire New Age’s interests in OML 113 in Nigeria which contains the Aje field.
According to a statement released this week, the acquisition, the firm said, not only strengthens its position in OML 113 but also opens up exciting possibilities for future growth in the energy transition and strategic flexibility.
PetroNor will pay New Age $6 million cash plus a deferred future gas production payment up to a maximum of $20 million to acquire New Age’s entities holding a project economic and voting interest in the OML 113 Joint Operation Agreement (JOA) of 32 per cent.
Subject to completion, the agreement will not only increase PetroNor’s economic stake but also reinforce the company’s active involvement and influence in the license partnership to plan for the re-development of the Aje field.
PetroNor’s existing position in OML 113 was achieved through the acquisition of Panoro Energy’s Nigeria interests in a transaction which completed in 2022.
PetroNor is working with the OML 113 operator, Yinka Folawiyo Petroleum (YFP), to create a jointly owned company, Aje Production AS, which will hold a project economic and JOA voting interest of 39 per cent.
Following the completion of these transactions, PetroNor and YFP-related entities will have a project economic and JOA voting interest of 71 per cent.
The Aje field is estimated to contain recoverable resources of 480 billion cubic feet (BCF) of gas, 54 million barrels of oil, condensate, and liquefied petroleum gas (LPG).
The acquisition of New Age’s Aje interests will increase PetroNor’s net 2C contingent resources in Aje from 27.1 million barrels of oil equivalent (mmboe) to 70.1 mmboe.
Speaking on the development, the Interim CEO of PetroNor, Mr Jens Pace said: “This acquisition is consistent with PetroNor’s commitment to expanding its portfolio while demonstrating shareholder value. Acquiring New Age’s interests represents a big step in achieving the partner alignment necessary to move forward with plans for the redevelopment of the Aje field.
“We are excited about the potential value of this gas resource which is located close to major population centres and offers a cleaner source of energy for power generation and industrial use compared to current alternatives.”
The completion of the transaction is subject to customary conditions, including regulatory approvals in Nigeria
The Aje oil and gas field was discovered in 1996 with Aje-1 well. After several appraisal wells, the field started production in May 2016 via the Front Puffin FPSO. There were two producing wells in 2021 prior to suspending production, the Aje-4 with oil production and Aje-5ST2 with oil and gas production.
In addition to the oil, there is a significant gas-condensate column ready for further development. The oil production stopped in November 2021 due to the terminated contract with the FPSO.
