Addax Acquires ExxonMibil’s 40% Stake in JDZ Block
By Chika Amanze-Nwachuku with agency report, 09.26.2007
Swiss firm Addax Petroleum has offered to buy ExxonMobil's 40 percent interest in oil block 1 of the Nigeria-Sao Tome Joint Development Zone (JDZ) in the Gulf of Guinea.
Making the announcement yesterday, the company said it would pay $77.6 million (N10bn) and 2.0 percent of its share of profit oil from Block 1 for ExxonMobil's interest.
Block 1, located about 300 kilometers offshore Nigeria, was awarded during the 2003 licensing round conducted by the Joint Development Authority (JDA) with another US oil major, Chevron as the operator with a 51 percent working interest.
The other partner is Dangote Energy Equity Resources Limited (a Joint Venture between the Dangote Group of Nigeria and Energy Equity Resources AS of Norway), with nine percent equity.
The block, which cost the partners $123 million, is estimated to hold up to a billion barrels of oil and gas reserves. Already, Chevron has drilled the Obo-1 well in Block 01, with considerable success.
The purchase of ExxonMobil's interest in Block 01, adds to Addax’s existing interests in blocks 2, 3 and 4 (were indigenous producer Conoil also has 20percent) in the JDZ.
The Swiss company has a 14.3percent interest in Block 2, a 15percent interest in Block 3. It is also the operator of Block 4 with a 38.3percent interest.
It would be recalled that Addax Petroleum recently increased its Gabon production by over 30,000 barrels per day, one year after the acquisition of the operations of Pan ocean Energy Corporation limited. The company had also in January announces a 45 percent increase in its gross working interest proved plus probable reserves.
