Commenting on signing the PSC Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said, "The addition of OPL291 to our deepwater exploration portfolio is truly exciting. The highly prospective nature of the property is underlined by its proximity to the nearby world-class Agbami oil field which is currently under development. We believe that OPL291 offers significant potential to our company and its shareholders."
OPL291 represents the mandatory relinquishment area of OPL216 following conversion of OPL216 to Oil Mining Lease ("OML") 127 preceding the development of the Agbami field in OML127 by Chevron. OPL291 was tendered by the Nigerian government under the 2006 mini bid round and was recently awarded to Starcrest.
Pursuant to the PSC, Addax Petroleum and Starcrest (i) shall pay a PSC signature bonus to NNPC of US$55 million, (ii) shall undertake an initial investment of US$75 million covering an initial work commitment which comprises the acquisition of 3D seismic and drilling one well and (iii) have entered into a Memorandum of Understanding with NNPC to undertake an investment in an Independent Power Project which would be developed with gas from a commercial development in OPL291 and agreement with NNPC on the technical and commercial arrangements should the IPP proceed.
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