Earlier this year, Sunlink and SNEPCo entered into a Heads of Agreement and Farm In Agreement which culminated in the Joint Operating Agreement formalized today.
By virtue of the farm in, SNEPCo, which now holds 40 percent equity interest in the block, will have primary responsibility for operations in the block in its capacity as technical partner to main license holder, Sunlink.
Dr. Olumide, Sunlink's Chairman/Managing Director said: "Sunlink is delighted to have teamed-up with Shell for a long term mutually beneficial relationship. Sunlink looks forward to working closely with Shell on all aspects of oil and gas operations and longer term, to develop into a fully stand alone and significant independent operator in Nigeria".
Chima Ibeneche, SNEPCo's Managing Director said: "SNEPCo is delighted with the outcome of our several months of discussions and negotiations with Sunlink over OPL 238. Our priority now is to effectively leverage our technology and expertise and to develop and produce the hydrocarbon resources in this block to the benefit of all stakeholders. By the same token, we expect that this partnership will also lead to the development of Sunlink into a competent, full fledged long term Nigerian E & P player".
Sunlink Petroleum which is the original OPL 238 license holder is an indigenous E & P company with a long standing presence in the Nigerian Oil and Gas industry.
OPL 238 is mainly an offshore gas block in water depths of about 100 meters which upon development, will likely commercialize its produced gas through one of the planned Shell LNG Projects at either Olokola or Bonny, therefore, creating value to both stakeholders in this license.
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