SacOil Holdings Limited announced the receipt of US$10 million from Ecobank, associated with the cash collateral that secured the performance bond on Oil Prospecting License (OPL) 233 in the Niger Delta region, Nigeria.
SacOil entered into a farm-in agreement with Nigdel United Oil Company (Nigdel) and Energy Equity Resources Norway Limited (EERNL) in November 2010 under which SacOil and EERNL agreed to assist Nigdel in the procurement of the Performance Bond as required under a profit-sharing contract.
The cash collateral was originally paid as part of SacOil’s obligations towards posting the bond in April 2013. This performance bond has expired on 2 May 2015 and SacOil has since announced the Company’s withdrawal from the joint venture as part of its new strategy to balance and rationalise its portfolio of assets. The Company said in an earlier statement that its withdrawal from OPL 233 “improves the Company’s financial position and will reduce future financial exposure emanating from such higher risk assets.”