Norway-based PetroNor E&P has agreed to acquire the interests of New Age (African Global Energy) in the offshore OML 113 block in Nigeria which contains the Aje oil and gas field.

The consideration for the economic and voting interest in the OML 113 joint operation Agreement (JOA) of 32% is worth up to $26m. It is made up of $6m in cash payment along with a deferred future gas production payment that could reach a maximum of $20m.

PetroNor E&P stated that the acquisition not only bolsters the company’s standing within OML 113 but also presents promising prospects for future expansion in the realm of energy transition and strategic adaptability.

Upon completion, the agreement will augment PetroNor’s economic stake as well as enhance its proactive engagement and impact within the license partnership, facilitating the planning for the Aje field’s redevelopment.

The Aje field is believed to hold recoverable resources comprising 480 billion cubic feet (BCF) of gas, 54 million barrels (mmbbls) of oil, condensate, and liquefied petroleum gas (LPG).

PetroNor’s acquisition of New Age’s Aje interests will substantially boost the company’s net 2C contingent resources in the Nigerian field, increasing it from 27.1 million barrels of oil equivalent (mmboe) to 70.1mmboe.

The finalisation of the deal is contingent upon standard conditions, which include obtaining regulatory approvals in Nigeria.

PetroNor interim CEO Jens Pace said: “This acquisition is consistent with PetroNor’s commitment to expanding its portfolio while demonstrating shareholder value. Acquiring New Age’s interests represents a big step in achieving the partner alignment necessary to move forward with plans for the re-development of the Aje field.

“We are excited about the potential value of this gas resource which is located close to major population centres and offers a cleaner source of energy for power generation and industrial use compared to current alternatives.”

The Norway-listed firm initially established its presence in OML 113 through the acquisition of Panoro Energy’s Nigerian assets in a transaction that concluded in 2022.

PetroNor said that it is working with Yinka Folawiyo Petroleum (YFP), the operator of OML 113, to establish a jointly owned entity called Aje Production. The new entity will collectively possess a 39% interest in the project’s economics and JOA voting rights.

Upon the conclusion of the transactions, PetroNor and affiliated entities of YFP will together have a 71% stake in the project’s economics and JOA voting rights.