Spanish Firm Acquires Yinka Folawiyo Petroleum

Adedayo Osho - Abuja Bureau Chief

Spanish independent oil and gas exploration company, PetroNor, has entered into a binding agreement to acquire 32% stake in African energy company, New Age - operating the Nigerian Oil Offshore Mining Lease (OML) 113.

PetroNor’s term of the agreement covers 845 km2, with the lease containing the Aje gas condensate field. The Aje gas and condensate field lies in Oil Mining Lease 113 (OML 113) in the Benin Basin, approximately 24 km offshore of western Nigeria. The water depth in the region is 3,000ft.

Yinka Folawiyo Petroleum (YFP) is the operator of OML 113 with a 60 percent interest.

PetroNor will acquire OML 113 from New Age for $6 million in addition to a deferred future gas production payment of up to $20 million.

This consideration will permit PetroNor an economic and voting interest in the lease’s joint operation agreement of 32%.

“Acquiring New Age’s interests represents a big step for the redevelopment of the Aje field,” stated Jens Pace, Interim CEO of PetroNor, adding, “We are excited about the potential value of this gas resource, which is close to major population centers and offers a cleaner source of energy for power generation and industrial use compared to current alternatives.”

Following completion of the transaction and subject to regulatory approvals in Nigeria, PetroNor will work with OML 113 operator, Nigerian industrial group Yinka Folawiyo Petroleum, to develop a jointly owned company, Aje Petroleum. The Joint Venture will hold a project economic and joint operation agreement of 39%.

The Aje field is estimated to hold recoverable resources of 480 billion cubic feet of gas and 54 million barrels of oil, condensate, and Liquefied Petroleum Gas. As such, acquisition of New Age’s interest in the lease will increase PetroNor’s contingent resources in Aje from 27.1 to 70.1 million barrels of oil equivalent.