ADM Energy, OilBank Pre-qualify for Nigeria’s Marginal Oilfield Bid Round
Natural resources investment company, ADM Energy Plc, has pre-qualified for the second stage of Nigeria’s 2020 marginal field bid round. ADM is participating in the bid round as the exclusive technical partner of Nigerian integrated oil and gas service management company, OilBank International Limited.
ADM signed a Memorandum of Understanding (MoU) with OilBank as its exclusive technical partner to support its bidding for and any future development of the marginal fields.
“The bid round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment,” said Osamede Okhomina, CEO of ADM. “The MoU with OilBank gives us a high-quality local partner to work alongside our team of expert technical advisers. This, combined with the Trafigura strategic alliance for up to $100 million of pre-financing, means we are in a strong position to evaluate and finance investment into attractive oil and gas assets.”
ADM will enter in to a substantive agreement with OilBank under which ADM will participate and invest in the development of any awarded fields, if OilBank’s application is approved.
“We have great confidence in ADM as our exclusive technical partner for this marginal field round, the first to be launched in Nigeria in nearly twenty years. The ADM management team is highly knowledgeable of the local oil and gas sector, both from a technical standpoint and in deal making, and are proven skilled negotiators with both government bodies and counterparties. Having now pre-qualified, we look forward to working together as we progress [in] our bid for marginal fields, [which is] capable of delivering substantial value for us both.” added Biodun Otunola, Director of OilBank.
The Nigerian Department of Petroleum Resources announced the launch of a new bid round for a total of 57 marginal fields covering onshore, swamp and shallow offshore fields on 1 June 2020 and plans to conclude the bid round by the end of August 2020.