Oriental Energy takes full operational control of Ebok fields

Oriental Energy Resources Limited (Oriental), the 60 percent equity owner of the Ebok and Okwok assets, offshore Nigeria, and the licensee and operator with the Nigerian government, has provided an update on the progress of implementation of the Ebok field transition plan, and the status of negotiations with Afren plc (in administration) on the resolution of issues arising from its insolvency.

Following the implementation of the Ebok Field Transition Plan in August 2015, Oriental has taken full operational control of the Ebok field from Afren plc’s wholly-owned subsidiary Afren Resources Limited (Afren) providing working capital to fund all operations, while absorbing key operations’ personnel, ensuring that the company has the technical capability to operate the asset independently and safely, in line with its long-term strategy.

Oriental Energy, in a statement made exclusively to BusinessDay, said it had assumed full responsibility for funding field operations, transferred the employment of 100 key Afren Commercial, legal, technical and operational staff to Oriental directly, assuming direct responsibility for their upkeep and the London and Houston offices.

The energy company also said it was in the process of completing the transfer of all technical agreements and contractual agreements related to the Ebok field, and had assumed responsibility for all costs for field operations from August 1, 2015, and at the same time, had presented to and received the formal support of the Department of Petroleum Resources (DPR) and its partners and farmers in the OML 67 NNPC ExxonMobil JV in its assumption of full operational control of the Ebok field.

Analysts say implementing these measures demonstrates Oriental’s clear capability to assume both financial and technical leadership for the ongoing and safe production operations at Ebok, and the further field development that has been planned.

Meanwhile, Oriental cautions all interested parties who may have an interest in pursuing a commercial opportunity in any of the Oriental-Afren JV properties in Nigeria, which includes the Ebok, Okwok, and OML115 licenses, for the purpose of acquisition, transfer, or purchase of an economic interest in any petroleum license area in Nigeria.

It says that any of these interest is subject to the prior approval of the Ministry of Petroleum Resources and DPR, ExxonMobil and NNPC who are the farmors of the Ebok and Okwok fields, as well as Oriental Energy Resources, who hold 60 percent Participatory Interest as owner and Operator for the Okwok, Ebok, and OML115 assets.

Oriental noted that it is working to ensure stakeholders are aware that any interested party seeking to pursue a commercial opportunity on the Ebok or Okwok licenses, is required to assume all partner carry obligations and pay all the outstanding and material outstanding contractor debts incurred by the Afren entities and all defaulted and breach obligations previously covered by Afren.

It said in the statement that the dissolution of Afren plc will have no material impact on safe operations and production and that development work will continue.