DANGOTE Exploration Company, subsidiary of the Dangote Group has offered the Federal Government a $30 million wager on the of multi-billion dollar development of 300,000 barrels per day petroleum refinery and 5000 Megawatts power station, in consideration for �rights of first refusal� (ROFR)over two oil blocks in the 2007 licensing round.
Government has in turn offered Dangote and nine other foreign investors which have proposed similar development schemes ROFR over 20 oil blocks.
Dr. Edmund Daukoru, Minister of Energy disclosed this while speaking with journalists in London after the road show to showcase what is on offer in this year�s round, originally scheduled for the last quarter of 2006.
The Minister disclosed that Dangote Exploration Company had while offering the wager pointed that it intends to commence serious work on both projects within 15 months, adding that it was prepared to forfeit the $30 million wager if it fails to commence work within the period.
Dr. Daukoru also pointed that in consideration of the company�s offer, it had been granted the ROFR over OPL 2007, 290 and 2nd rights of refusal over OPL 2001.
It was gathered that even after Dangote successfully commences work on both projects within the stipulated period, government would deduct administrative cost from the wager before making any refunds.
He apologised for the delay in the take-off of the round, pointing out that it was only proper for the administration to bring the round to a logical conclusion since it had commenced working out modalities for it and putting things in place.
�Once you start a round, you take it to conclusion and not to leave it hanging. We have been guided by transparency. We have a level playing field,� he said.
The Minister pointed out that rather than apply four parameters like was done in the 2005 licensing round, only one would be used in the 2007 round, while successful bidders would be required to make a 50 per cent down payment at the commercial bidding conference.
He disclosed that some of the prospective investors have shown interest in developing only gas blocks and assured that adequate information on gas would be put on the website for easy access.
The Minister also assured prospective investors of government�s commitment to the sanctity of existing contracts, adding that Nigeria is a responsible member of the international community and would not do anything to jeopardise its standing.
In his presentation, Mr. Tony Chukwueke gave the breakdown of the blocks and the companies with the �right of first refusal as well as the accompanying downstream projects valued in excess of $2 billion. The companies are:
Repsol Nigeria Limited has �rofr� over Oil Prospecting Lease 2001 and 2010. The company has undertaken to build a 150 million standard cubic feet per day capacity gas production and distribution facility.
Centricca CCC has undertaken to construct 150,000 barrels per day Greenfield Refinery. The company has �rofr� over OPL 231, 2002 and 2003.
Sterling Global E&P has undertaken to construct 2 million tons per annum Fertiliser plant, 250 megawatts Independent Power Plant and a Liquefied Petroleum Gas plant with a capacity for one million tons per annum. The company has �rofr� over OPL 275, 2004 and 2008.
Dangote Exploration has undertaken to construct 300,000 barrels per day refinery and 5000 Megawatts capacity Independent Power Plant.
Petronas has undertaken to construct 2.5 metric tons capacity petrochemicals plant to provide seven thousand jobs in the delta. The company has �rofr� over OPL 241 and 2nd rights of refusal over OPL 274.
Global Steel ERM has undertaken to construct 550 metric tons per day capacity offshore gas gathering facility, 550 Megawatts Independent Power Plant and Compressed Natural Gas (CNG) facilities in Lagos and Abuja. The company has �rofr� over OPL 225, 274 and 2nd rights of refusal over OPL 226 and 290. CNOOC Nigeria has secured an EximBank loan for railway construction and the establishment of an Independent Power Plant in Nigeria. The company has �rofr� over OPL 2009, 2005, 2006 and 2nd rights of refusal over OPL 2001, 2011, 231 and 226. Petroleum acquires Gabonese oil block
By Yemie Adeoye with Agency reports
ADDAX Petroleum Corporation international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East, has announced that it has entered into an agreement to acquire a 50 per cent interest in the Epaemeno license area from BowLeven plc which retains a 50 per cent interest.
Addax Petroleum will become operator of the Epaemeno license area which is immediately north of the Corporation�s Maghena and Awoun license areas, onshore Gabon. The acquisition is subject to the consent of the Gabonese Government.
Commenting on the development, Addax Petroleum�s President and Chief Executive Officer, Jean Claude Gandur, said: �The addition of the Epaemeno license area to our exploration portfolio in Gabon is in line with our strategy of building out from our existing properties and operating infrastructure.
We are delighted to partner with BowLeven and as the intended operator of Epaemeno, believe that exploration activity can be integrated effectively with our ongoing development and exploration activities in Gabon.�
Under the terms of the acquisition, Addax Petroleum, in return for a 50 per cent interest in the Epaemeno license area, is obligated to pay the first US$10 million of BowLeven�s share of exploration costs and in the event a commercial development, the first US$8 million of BowLeven�s share of development costs.
The Epaemeno license area covers approximately 331,100 acres (gross) and lies immediately north of the Maghena and Awoun license areas, onshore Gabon.
Addax Petroleum holds a 92.5 per cent interest in the Maghena license area and a 40 per cent interest in the Awoun license area. The Maghena license area is operated by Addax Petroleum and contains the producing Tsiengui oil field. The Epaemeno license area production sharing agreement (PSA) was awarded in late 2004.
Meanwhile limited exploration activities by previous companies had taken place on the Epaemeno license area including drilling of four unsuccessful wells between 1976 and 1991 and the acquisition of approximately 1,000 kilometres of 2D seismic data.
Work is currently being undertaken to re-process and re-interpret the 2D seismic data ahead of further seismic acquisition or exploration drilling.