Belema Oil Producing Limited and Seplat have formed an asset management team (AMT) to jointly manage Oil Mining License (OML) located in one of the Kalabari areas, formerly owned by Chevron.
The memorandum of understanding was reached in Port Harcourt yesterday, to put an end to the disputes that raged in recent years between the two oil firms.
According to a statement issued by the managing director of Belema Oil, Boma Brown, the AMT is for the operation of what the company calls ‘BelemaOil-acquired OML 55 to bring a novel approach in creating/maximising shareholders’ value in the Nigerian Oil and Gas industry.
The document described BelemaOil as the first local community Exploration and Production (E&P) company with an OML now partnering with Seplat, which has Western operational experience in the Nigerian oil and gas industry to build a world-class company during this period of strategic collaboration for mutual value creation.
The statement said: “The partnership therefore has a fusion of Europe and North America looking at it from a global perspective, and the Nigerian industry (eastern and western0 experience. These key industry knowledge strengths will be leveraged upon to unlock the resource in OML 55 to the benefit of all stakeholders.”
The statement described both parties as people with passion for the development of their areas of operation, as “BelemaOil is unique in this instance as both an indigenous and local company.”
This could be because in its first six months of operation, BelemaOil is said to have increased production by more than 25 per cent by bringing a novel partnership between the host communities and the company.
“This has provided and guaranteed a continuous enabling environment for the company to carry out its operations and activities in its operational areas located in the Niger Delta with minimal disruptions,’’ the statement added.
Brown stated that the company believes that economic would be sustainable when there is peace and the people partake to create and share the value. “The AMT therefore will leverage on the strengths of these two globally and locally dependable companies to not only create value for its shareholders/stakeholders, but also enhance the social performance reputation of the Nigerian oil and gas industry’.
BelemaOil recently announced employment of a 520 workers mostly from the communities and has mapped out numerous projects to prove the difference between multinationals and locally owned oil companies.
BusinessDay gathered that BelemaOil raised loans from Seplat but at a point, the debt was being changed to equity, an attempt BelemaOil was said to resist. The dispute lasted till the resolution of an AMT to resolve the matter and repay the loan.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
