Oando Signs PSC, GMoU on OPL 236

Oando Exploration and Production (OEPL), in line with its commitment to fast track the development of its upstream assets, in Uyo, Akwa Ibom, signed a Global Memorandum of Understanding with the Ukana South 1 communities, within block OPL 236.

Prior to this, OEPL had signed a Product Sharing Contract Agreement (PSC) with the Nigerian National Petroleum Corporation (NNPC) over the same Block.

With the signing of the PSC and GMOU, Oando has displayed its readiness to commence activities on the predominantly gas Block.

Speaking on the signing of the GMoU, Mr. Eamon Labode Akinosho, Chief Operating Officer, Oando Exploration and Production said "The Global Memorandum of Understanding (GMoU) provides for choice of sustainable community development projects that rest solely with the community. This strategic agreement is a model arrangement to further enhance the trust and confidence of our host communities."

The GMoU has been designed to encourage participatory partnership with stakeholders for the promotion of peace, security and sustainable development in the area. It will also aid capacity building from the various stakeholders in the host communities.

The Block, which was awarded by the Federal Government during the 2005 round is expected to add to the gas reserve base of Nigeria. Oando Exploration and Production Limited (OEPL) have a 95 per cent operating interest, while R.F.O Ventures Ltd has a 5 per cent interest.

"The acquisition of OPL 236 is a strategic addition to our already existing asset portfolio to sustain our long term plan of industrial and domestic gas distribution. With the gas potential suspected in the block, it will enhance our gas delivery to industrial customers within the eastern part of Nigeria" Mr. Akinosho adds.

The OPL 236 field is 60km east of Port Harcourt and it covers a distance of 1652 sq. km. It is located onshore in the South East Zone in Nigeria precisely Akwa Ibom State.

It would be recalled that East Horizon Gas Networks, a subsidiary of Oando Gas and Power organised an Environmental Impact Assessment (EIA) Open Forum as part of its statutory requirements for the granting of an Oil Pipeline License (OPL) for a gas pipeline. The 18 inches diameter pipeline will run from the existing NGC Valve Station in Akwa Ibom State and will terminate at the United Cement (UNICEM) factory which is presently under construction in Mfamosing, Cross Rivers State.