A signature bonus of $55 million is payable on signing of a Production Sharing Contract. BG Exploration and Production Nigeria Limited, a subsidiary of BG Group, will be the operator of OPL 286-DO and will undertake a work program including one exploration well in the first five year phase.
BG Group Executive Vice President for the Mediterranean Basin and Africa, Stuart Fysh, said: 'We are pleased to have secured this highly prospective acreage offshore Nigeria which complements our existing Nigerian investments in OPL 332 and the Olokola LNG project. We look forward to working with partners and the Nigerian Government in continuing to play an active role in the development of Nigeria's gas sector.'
OPL 286-DO is located in deep water (200 - 1,000 meters) offshore the western Niger Delta, approximately 250 kilometers south-east of the Lagos.
In January 2006, BG Group acquired a 45 percent interest in, and operatorship of, Block 332 offshore Nigeria. Sahara Energy Exploration & Production Limited also retains a 45 percent interest along with Seven Energy Nigeria Limited, which holds a 10 percent interest.
Also in January, BG Gas Marketing Limited announced that it had signed a Memorandum of Understanding with Nigeria's Brass LNG for the acquisition of 2.0 million tons per annum (mtpa) of LNG for 20 years. Shipments are expected to commence in 2010.
BG Group signed a Project Development Agreement in February 2006 with Chevron, Shell and Nigerian National Petroleum Corporation (NNPC) to undertake Front End Engineering Design on the Olokola LNG facility in Nigeria's western states of Ondo and Ogun.
In October 2003, BG LNG Services signed a Sales and Purchase Agreement with Nigeria LNG to acquire 2.5 mtpa for 20 years. Shipments to the Lake Charles import terminal in Louisiana commenced in January 2006.
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