NDEP Announces its 19th AGM 

Your company is pleased to give notice for its 19th AGM, holding Wednesday 17th September 2014 at the AGIP Hall, Muson Centre in Onikan, Lagos, starting at 11am. To view the AGM notice, click here. To download the Annual Report & accounts for the 2013 Financial Year, please click here. 

 Omerelu Farm Out Agreement Executed
 

After much delays, the Omerelu Farm Out Agreement between Niger Delta Petroleum Resources Ltd (NDPR) and the NNPC/Chevron JV has been executed by all parties.

In this latest milestone attainment for the Company, NDPR has become the farmee of the Omerelu Field, located in OML 53, and has become a Marginal Field Operator with two assets. Omerelu has 13MM bls STB (P50) and ultimate gas recoverable of 8 Bscf, which will significantly augment NDPR’s booked reserves and future (short to medium term) production output.

Dr. Layi Fatona, Managing Director of NDEP Plc which wholly owns NDPR Ltd, said: ‘With the Agreement now firmly in our possession, NDPR Ltd has a new lease of life. An exciting time lies ahead. As we work towards First Oil, we will draw from the lessons learnt in our journey as pioneers of marginal field development in Nigeria; not least the co-option of host communities through the Host Community Development & Environment Trust and the importance of working in an environmentally friendly manner.’

NDPR was granted a right of first refusal for the Omerelu Field, at the same time that it negotiated and executed the Ogbele Field Farm Out Agreement (FOA) in 2000. The said right could be exercised only, if and when Omerelu Field was declared a marginal oil field by the NNPC/Chevron JV. Six years ago, NDPR first exercised that right and after a protracted and painstaking period of negotiations between all parties including the DPR and NNPC (NAPIMS), Omerelu is now an asset of the Company. The process of formal transfer of the Omerelu Field to NDPR Ltd has already begun.

 1000th Truck Load of Diesel from Ogbele

On Saturday August 24th, the 1000th truck load of diesel was evacuated from the Product Loading Bay, Ogbele Oil & Gas Facilities, operated by Niger Delta Petroleum Resources Ltd (NDPR).

The unsuspecting driver of the 1000th truck, Adeyemi Adegbetan, an employee of Powertrac Machinery Ltd, was presented with a cheque of N50, 000 and was grateful for his good fortune. He also noted the high quality of the diesel from the Mini Refinery, which made for easy clearance though the multiple security agencies patrolling the transportation route in Rivers State.

‘The milestone occasion was marked by a small ceremony at the Ogbele Flowstation, with distinguished representatives from the Department of Petroleum Resources (DPR), presided over by Mrs. Onyebuchi Sibeudu  Deputy Director,  Zonal Operations Controller DPR Port Harcourt, who represented the Director of the DPR. Other guests included the President of Nape, Mrs. Adedoja Ojelabi, and Mr. Tele Dokun, MD, General Resources, who was joined by his team. Prof SJS Cookey (OFR), Member of the Board of NDEP and Chairman of the Host Community Development & Environment Trust, presented the lucky driver with his cheque while other NDPR staff from Port Harcourt and Lagos supported the event. 

 
The Mini Refinery, the only licensed, privately owned refinery in Nigeria, was commissioned in 2011 and shortly after, NDPR was granted a pioneering License to Operate (LTO) the facility by the Federal Government of Nigeria through the Ministry of Petroleum Resources. This gave NDPR full authority to operate its Mini Diesel Refinery. Since then, NDPR’s operations have fully benefited from diesel supply from within, ensuring self sufficiency and allowing surplus diesel to be sold into the domestic market.

Mrs. Onyebuchi Sibeudu - (Deputy Director) Zonal Operations Controller DPR Port Harcourt,  remarked, ‘I’m highly honoured to attend this milestone event and on behalf of the Director of DPR, I’d like to congratulate NDPR, for this achievement, more so as an indigenous operator. I urge NDPR Ltd to keep up the good work.’

Dr Fatona, commented, ‘This has been a modest way to mark an event of significant importance, not only for NDPR but also the nation. The Ogbele Mini Refinery and the NDPR Field Operating model are testaments to what is possible and achievable in Nigeria, using local capacity and resources. There is a clear need for more mini refineries of this class and I urge the DPR to encourage the implementation of more of such facilities.

‘Today was also a celebration of those who make our milestones possible - our young and committed workforce, especially the Flow Station Mini Refinery Operations Teams 1 and 2. At NDPR we are committed to clean and environmentally safe operations, while providing the local economy with high quality diesel.’ 

 Production Update

The 2014 drilling campaign program is very much on course with an attendant positive impact on daily production.  Average daily production is at 3,784 b/d. The Company has reported monthly crude oil export from the SPDC Bonny Terminal since the beginning of the current financial year. The Ogbele Well #8 is currently drilling. It is expected that Ogbele Well #9 will spud immediately after, in October. 
 

 Gas Update

With the completion of Well #6 and the planned completion of Well #8, it is expected that the two wells between them will boost gas production with an additional supply of 30-40mmscf/d. Ongoing de-bottle necking will allow additional gas supply availability. 

Your Company has equally successfully negotiated a new GSPA with a local off taker in line with the current domestic gas market pricing. This will expectedly positively impact the current revenue from Gas sales.

Raising Additional Capital for NDEP