The JDA approval states that Addax satisfies the JDA's technical and commercial requirement for the operatorship of JDZ Block 4, and requires the ERHC-Addax consortium designate Addax as the operator, as well as for the consortium to accept all commercial and technical terms of the original award of 35 percent equity interest.
ERHC Energy announced Friday that the company had entered into a memorandum of understanding with Addax Petroleum on October 25, 2005. The parties are in the process of negotiating a participation agreement.
"Naturally, we are enthused by the JDA's recognition of Addax Petroleum as an attribute to Block 4 and our mutual goals of exploring this deepwater opportunity," said Ali Memon, ERHC Energy president and CEO. "We are committed to moving swiftly and responsibly through the negotiating process in accord with the guidelines the JDA has established."
Addax Petroleum is an international oil and gas exploration and production company currently focused on West Africa. Its technical services office is located in Geneva, Switzerland. The company commenced operations in Nigeria in 1998 when it signed two Production Sharing Contracts with the Nigerian National Petroleum Corporation for Blocks OML-123 (offshore), and OML-124 (onshore), operated by Addax Petroleum Development (Nigeria) Limited and for OPL-90 and OPL 225 (offshore) operated by Addax Petroleum Exploration (Nigeria) Limited, both subsidiaries of Addax Petroleum NV, a subsidiary of the Addax and Oryx Group. Both PSCs are operated 100% by Addax Petroleum. Addax Petroleum commenced production in 1998 in Nigeria, producing 9,000 barrels per day. After intensive drilling activity, Addax Petroleum is currently averaging 50,000 barrels per day from OMLs 123 and 124, and with the addition of the Okwori production, it is forecasted to produce in excess of 80,000 barrels per day by the year-end.
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