• Wednesday, June 19, 2024
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Sirius Petroleum signs agreement with Baker Hughes for development of Nigerian oil bloc

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Sirius Petroleum has signed a Memorandum of Understanding (MOU) with Baker Hughes, one of the world’s largest oil field services companies, for the development of Oil Mining Licence (OML) 65, a large onshore block in the western Niger Delta, Nigeria.

This agreement means Baker Hughes will provide a range of drilling and related services under a mutually agreed pricing structure to deliver the initial nine well programme for OML 65.

“We are extremely pleased to be selected for this project with Sirius and their JV partners. This project represents an important step towards delivering our world-class Integrated Well Services solutions on one of the more prolific fields within the Niger Delta,” Toks Azeez, Sales & Commercial Executive of Baker Hughes said.

He noted that Baker Hughes’ technology efficiencies and excellence in execution will support Sirius in enhancing their cost-effectiveness and competitiveness in the energy market.

OML 65 is a large onshore bloc in the western Niger Delta containing one producing field called Abura. The oil field has been in production since 1978.

“We are delighted to have secured the services of one of the world’s leading energy technology companies to work with our joint venture team to deliver the approved work programme on the OML 65 block.,” Bobo Kuti, CEO of Sirius said.

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He added, “We look forward to building a long and mutually beneficial partnership with Baker Hughes.”

Recall, Sirius had initially executed various legal agreements with CMES-OMS Petroleum Development Company Limited (COPDC), a wholly-owned indigenous Limited Liability Exploration and Production Company, in order to deliver this programme.

COPDC executed a Financial and Technical Services Agreement (FTSA) with the Nigerian Petroleum Development Company (‘NPDC’) for the development and production of the oil reserves and resources on OML 65.

The FTSA includes an approved work programme that envisages a three-phase development of the block and Sirius has entered into an agreement with the JV to provide funding and technical services toward the execution of the AWP.

The JV will focus initially on the redevelopment of the Abura field, involving the drilling and completion of up to nine development wells, intended to produce the remaining 2P reserves of 16.2 MMbbl, as certified by Gaffney Cline and Associates (‘GCA’) in a CPR dated June 2021.