Oando’s Oil Reserves Raised by 82 per cent
Oando Energy Resources Incorporated (OER), a subsidiary to one of Africa’s largest indigenous integrated energy brand, Oando Plc, said that its oil reserves substantially increased by 82 per cent meaning that they now have a significant stake in the Nigerian oil and gas industry.
This increase was as a result of technical revisions done by the company as well as the purchase of the Nigerian upstream oil and gas business of Conoco Phillips, a United States based energy firm which was concluded in July 2014 for the total cash sum of $1.5bn.
This information contained in the company’s 2014 year-end summary and reserves report for its assets in Nigeria as announced by the oil giants stated that itsproved net reserves increased by 78 per cent to 288.5 million barrels of oil equivalent, while proved and probable net reserves increased by 82 per cent to 420.3 mmboe.
The statement further explained that the economic value (net present value 10 per cent of future net revenue) of the proved and probable reserves had increased by $545m (+44 per cent) to $1.785bn, largely due to the COP acquisition.
The increase, OER said, was largely due to recognising the precedence of the licence renewal under the Nigerian Petroleum Act, which is the basis of the extension of the reserves beyond the current license limit.
The company said the annual independent reserves and resources evaluation was undertaken by DeGolyer and MacNaughton, a worldwide petroleum consulting group.
In his remarks, an elated Chief Executive Officer, Oando Energy Resources, Mr.PadeDurotoye, said, “We are very pleased with the new 2014 reserves numbers that confirms our thesis at the time we embarked on our transformative COP acquisition.”
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