Energy firms sign risk service agreement on Olua field

In a deal that will help to advance Nigeria’s oil production target, Ardogreen Energy Limited and its parent companies, Messrs Ardova Plc and Petrodev Oil and Gas Limited have formalised a risk service agreement with Messrs HSI Energies Limited for the development of the Olua Field.

The scope of the agreement includes drilling the Olua-1 and Olua-2 wells and installing field processing and transportation facilities to facilitate the conversion of petroleum prospecting licence (PPL) 203 into a petroleum mining lease (PML) by the end of the second quarter of 2025.

A significant fallout of the agreement is for Ardova and Petrodev Oil and Gas to assign a 20 per cent working interest in the Olua Field to HSI Energies in a farm-out arrangement subject to all regulatory approvals.

Ardogreen Chairman, Abdulwasiu Sowami, said: “The transaction is a significant milestone in the realization of Ardogreen’s vision of becoming a full-fledged E&P operator.”
Vice-Chairman, Anthony Idigbe, added: “The transaction supports President Tinubu’s one-million-barrel project to increase production by one million barrels.”

Group CEO of HSI Energies Group, Chikezie Nwosu, expressed excitement at the deal, which he said “enables HSI to pursue its long-term strategy in the Nigerian energy sector”.