Phase 1 of the AWP will involve the further development of the Abura field, which is currently producing over 10,500 bopd,
Sirius Petroleum executes senior loan facility agreement with Trafigura. (Credit: John R Perry from Pixabay)
Sirius, an Africa focused oil & gas production and development company, is pleased to update shareholders on the funding of the Company’s production and development transaction in respect of OML 65 in Nigeria.
On 14 May 2021, the Company announced that credit approval had been secured for a senior funding facility with a leading global commodity trading company, which would form the major part of the funding required to deliver Phase 1 of the Approved Work Programme (“AWP”) on the OML 65 block, onshore Nigeria. Phase 1 of the AWP will involve the further development of the Abura field, which is currently producing over 10,500 bopd, comprising a planned nine well drilling programme, estimated to boost production from the Abura field by up to an additional 11,000 bopd.
Sirius is pleased to announce that it has now executed a Senior Loan Facility Agreement (the “Agreement”) with Trafigura PTE Ltd, a company within the Trafigura Group (“Trafigura”), to fund Phase 1 of the development of the Proven and Probable Reserves of 51mmbbls¹ on the OML 65 licence. The Facility Agreement provides for up to US$200m, completion subject to customary conditions precedent, to be drawn in tranches and deployed toward the further development of the producing Abura field.
Bobo Kuti, CEO of Sirius, said: “The Senior Loan Facility with Trafigura marks a milestone for the development of OML 65 and Phase 1 is designed to deliver a significant uplift in production from the Abura field. In addition, the option to increase the facility to US$200m supports our plans for Phase 2 of the development programme for the block. Trafigura is one of the world’s leading commodity trading companies and has extensive knowledge and experience of the Nigerian upstream industry. We look forward to achieving financial close on the OML 65 transaction imminently and commencing the first phase of the approved work programme to boost production at the Abura field.”
Source: Company Press Release