Ardogreen Energy signs risk service agreement with HSI Energies

Ardogreen Energy Limited and its parent companies, Messrs Ardova Plc. and Petrodev Oil and Gas Limited, have formalised a Risk Service Agreement with Messrs HSI Energies Limited for the development of the Olua Field on PPL 203.

The scope of the agreement includes drilling the Olua-1 and Olua-2 wells and installing field processing and transportation facilities to facilitate the conversion of its PPL 203 into a Petroleum Mining Lease by the end of the second quarter of 2025.

A significant and related fallout of the Risk Service Agreement is for Ardova Plc and Petrodev Oil and Gas Limited to assign a 20 per cent working interest in the Olua Field to HSI Energies Limited in a farm-out arrangement, subject to all regulatory approvals.

Ardogreen Chairman, Abdulwasiu Sowami, said: “The transaction is a significant milestone in the realization of Ardogreen’s vision of becoming a full-fledged E&P operator.”

Vice-Chairman, Anthony Idigbe, added: “The transaction supports President Tinubu’s one-million-barrel project to increase production by one million barrels.”

Group CEO of HSI Energies Group, Chikezie Nwosu, expressed excitement at the deal, which he said “enables HSI to pursue its long-term strategy in the Nigerian energy sector.”

Ardogreen Energy Limited is the operator under the JOA with Messrs Ardova Plc and Petrodev Oil and Gas Limited, the license holders of the Olua field under PPL 203.

Ardova Plc is a leading indigenous player in the downstream oil, gas and integrated energy sector and has a network of over 450 stations spread across the six geopolitical zones of Nigeria.

Petrov Oil and Gas Limited is an indigenous Exploration & production (E&P) company focused on the acquisition of oil & gas assets.

HSI Energies Limited is a fully integrated energy company that produces, processes, transports, stores, and supplies oil and gas products in the Nigerian, West African and global markets.

The company boasts of key capabilities and services such as petroleum exploration and production, petroleum product refining, gas supply for an extensive gas station network, petroleum marketing, supply and trading, storage for LPG and bulk petroleum products, shipping and energy field services and supply of ancillary petroleum products.