Seplat Petroleum Development Company has completed the acquisition of a 40 percent working interest in OML 53, onshore north eastern Niger Delta from Chevron Nigeria Limited (CNL).
NNPC holds the remaining 60 percent interest in OML 53. The up-front acquisition cost to Seplat, after adjustments, is $254.6 million, of which $69 million had previously been paid as a deposit in 2013 and $185.6 million paid at completion.
The adjustments to the up-front acquisition cost include a deferred payment of $18.75 million contingent on oil prices averaging $90 a barrel or above for 12 consecutive months over the next five years.
The Company estimates net recoverable hydrocarbon volumes attributable to its 40 percent working interest to be approximately 51 million barrels of oil and condensate and 611 billion standard cubic feet (Bscf) of gas (total 151 million barrels of oil equivalent or MMboe).