The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
this must also mean a deal is about to close!!!!
https://www.reuters.com/article/trafigura-beheer-rosneft-oil-vostok-oil-idUSL1N2JA0JI
I saw this article which speaks about Osa. Very Impressive!!
https://www.pambazuka.org/governance/shell-nigeria-struggle-accountability
I hope these minority views are not being influenced by people caught SELLING SHORT!!
Good thing is that Osa knows the system there! They got title within 2 months of announcing their application to DPR!
Link to Arden Partners research portal where ADME research note is posted.
https://research.arden-partners.com/portal/portal.html#/home
https://zubaircorp.com/TheZubairStory_OurFamily.aspx
Seems like they have great family wealth that they distribute to the sons in the family to reinvest in many sectors!
https://dubaibridgeinvestments.com/
They are run by the Al Zubair family which is originally from Oman. These guys have billions of dollars to invest.
ADM scoops a Lord on the board
The idea behind the current round is to wrest dormant fields, mostly from foreign companies active in Nigeria, and re-allocate them to indigenous outfits even though formal legal title will remain with the majors, making the assets hard to encumber.
Upstream understands the DPR aims later this year to award such contractual rights for as many as possible of these under-performing assets to local companies selected from a shortlist of 150 competitors, to be drawn up before the end of August.
Several E&P players attempted to prevent the DPR from revoking their licences and auctioning them to fresh suitors alongside the marginal fields pre-designated for the round, but their application for an interlocutory injunction was rejected by the Federal High Court.
These included Associated Oil & Gas, Dansaki Petroleum, Bayelsa Oil Company, Bicta Energy, Del-Sigma Petroleum, Sogenal Energy, Independent Energy, Sahara Energy, African Oil & Gas Ltd. and Goland Petroleum.(Copyright)
ADM teams up with Nigerian oil magnate to tease out marginal prize
After a flurry of board appointments and a cornerstone deal to secure backing from Trafigura, the London-based explorer reaches out for the last piece of the puzzle
3 August 2020 13:21 GMT
By Barry Morgan
in Paris
London-based explorer ADM Energy has pre-qualified to bid with a high-profile local partner in Nigeria’s Marginal Field Bid Round, under which the Department of Petroleum Resources is offering 57 fields across the Niger Delta shallows, onshore and swampy terrain.
ADM is targeting a shallow-water asset for which competition is understood to have intensified in recent days as local players team up with foreign suitors to form bidding consortia.
ADM will pursue participation in the second stage of the licensing exercise in “exclusive technical partnership” with OilBank International, an indigenous oil and gas service management firm, and the duo hope to submit technical and commercial bids by end-August.
“The 2020 marginal field licensing exercise, the first to be held since 2003, is a tremendous opportunity to invest in an undervalued, near-term production asset during a period of unprecedentedly low oil prices," said to ADM chief executive Osamede Okhomina.
Listed on the London, Frankfurt and Berlin stock exchanges, ADM intends to convert its memorandum of understanding with OilBank into a substantive agreement in the event that OilBank’s application for a marginal field is successful and a licence is awarded.
OilBank director Biodun Otunola is known in Nigeria for infrastructure development, while OilBank’s chairman and driving force is Prince Arthur Eze, the founder-chief executive of two producing Nigerian independents, Atlas Petroleum and Oranto Petroleum, which are both active regionally.
ADM currently partners local operator Yinka Folawiyo Petroleum on the Aje field in the Dahomey basin, located offshore on OML 113, but earlier told Upstream it aims to leverage interest from German industry and capital to expand in the Niger Delta and beyond.
An unfolding partnership with OilBank, announced this week, may be the key to attracting additional foreign partners into backing ADM’s Africa-wide expansion plans as Eze’s upstream portfolio reaches into several frontier plays from Sierra Leone, Liberia, Togo, Ivory Coast, Chad, Cameroon and Equatorial Guinea.
Over the past decade, Eze’s deal-making track record across the continent has involved myriad players including Chevron, Pioneer Natural Resources, Roc Oil, Lukoil, Noble Energy, Kosmos Energy, Canada’s Nexen Petroleum, Malaysia’s Petronas and Norway’s DNO.
“ADM earlier entered into a strategic alliance with Trafigura, securing up to $100 million in pre-financing, so we are in a strong position to evaluate and finance investment into attractive oil and gas assets,” said Okhomina.
Domestic gas
The earlier emphasis on oil asset base expansion in Nigeria and West Africa stands but Okhomina has seen increasing interest from local midstream and downstream players in domestic gas supply and sees strategic value in tapping Aje’s gas cap for export, power generation or compressed natural gas.
Analysis indicates proven, probable and possible dry gas reserves may emerge well in excess of 1.1 Tcf of gas initially in place (GIIP) when post-2019 Turonian data is integrated into calculations.
“We have a great gas asset just sitting there, we shall produce and sell to the independent power producers (IPPs), though we will not produce power ourselves,” he said.
ADM is watching closely ongoing moves by the Department of Petroleum Resources to license marginal fields in the Niger Delta left dormant by the majors, and will likely link up with one or more successful awardees among indigenous suitors later during the exercise.
German combine Siemens is being courted to provide a 7000-megawatt power plant by the end of 2021 as part of what the government hopes will be full participation in head of state Muhammadu Buhari’s Presidential Power Initiative (PPI) to select partners to implement the Electricity Roadmap Project.
It is envisaged the $2 billion PPI will eventually scale up to provide 25,000 megawatts to the grid by 2023, underscoring the government’s desire to draw German corporate and energy expertise into resolving Nigeria’s perennial power crisis.
Okhomina's ambition for ADM extends beyond Nigeria, having just this week appointed the former chief operating officer of Kosmos Energy, Darrell McKenna, as non-board technical advisor, alongside former Shell reserves assurance supremo, Satinder Purewal.
"All these appointments come as Aje partners focus on developing the gas reserves and tripling production, strengthening our position to accurately assess marginal fields in Nigeria and confidently progress investment opportunities across West Africa,” he said.(Copyright)
New strategy
Expanding Aje while targeting near-production oil assets in Nigeria and Africa was integral to ADM’s new vision after it lured Dubai investor Sheikh Ahmed bin Dalmook al Maktoum to take a 30% stake, yet Makhtoum never served on the board and backed out last year because of public scrutiny.
Meanwhile, Okhomina struck a deal with Trafigura, potentially unlocking $100 million in pre-offtake finance and another $20 million in convertible loan notes, even rights to oil lifting, and from 25 June began a secondary listing on the Berlin and Frankfurt stock exchanges.
Shares will commence trading from 17 July on Xetra, the electronic trading platform of the Frankfurt Exchange, with Oddo Seydler as designated sponsor.
The move followed a marketing drive in Germany to court institutional investors, designed to ease share access for continental investors, “especially German investors who demonstrated an excellent understanding of opportunities that exist in Africa’s oil and gas sector,” says Okhomina.
ADM takes on German know-how to drive Nigeria gas to market
As global energy technology leader Siemens expands role in developing Nigeria's gas-to-wire sector, London's ADM Energy bags German sponsor to lure continental investors
16 July 2020
By Barry Morgan
in Paris
Nigerian oil producer ADM Energy is poised to switch medium-term focus to the West African country’s burgeoning gas sector, kicking off with development of a 792 billion cubic feet gas resource within Dahomey basin Block OML 113, off Lagos.
“We’re now hoping with partners to secure a final investment decision for the gas development before end-2023, according to the London-based player's chief executive, Osamede Okhomina.
Backing ADM’s new strategy as capital market sponsor is Franco-German financial service provider Oddo Seydler Bank AG, part of the Oddo GHF Group — a move that is sure to engender confidence in the play within the German investor community.
Aje asset
The AIM-listed explorer partners Nigerian operator Yinka Folawiyo Petroleum (YFP) with Energy Equity Resources (EER), New Age and PetroNor E&P in pumping oil from the Aje block, intersected to the north by the West African Gas Pipeline, which already supplies the littoral.
Prior to ongoing deal completions on OML 113, the breakdown of participating equity based on government licence limitation presents YFP with 69%, New Age 12.8%, EER 9%, Panoro 6.5% (under acquisition by PetroNor) and ADM 2.7%.
ADM now holds a 5% profit share in Aje and is acquiring an additional 4.2% profit interest in Aje oil production from partner EER Colobus, further shoring up cashflow.
Average oil production from Aje managed just 2967 barrels per day in the first quarter, from producers Aje-4 and Aje-5, with crude stored aboard the Front Puffin floating production, storage and offloading unit.
Output has slid each year since 2016, but plans are tabled to hike oil production to 9000 bpd, initially by sinking three new wells in the Cenomanian and Turonian reservoirs — some 20,000 barrels of oil equivalent per day is projected once the programme is completed.
New strategy
Expanding Aje while targeting near-production oil assets in Nigeria and Africa was integral to ADM’s new vision after it lured Dubai investor Sheikh Ahmed bin Dalmook al Maktoum to take a 30% stake, yet Makhtoum never served on the board and backed out last year because of public scrutiny.
Meanwhile, Okhomina struck a deal with Trafigura, potentially unlocking $100 million in pre-offtake finance and another $20 million in convertible loan notes, even rights to oil lifting, and from 25 June began a secondary listing on the Berlin and Frankfurt stock exchanges.
Shares will commence trading from 17 July on Xetra, the electronic trading platform of the Frankfurt Exchange, with Oddo Seydler as designated sponsor.
The move followed a marketing drive in Germany to court institutional investors, designed to ease share access for continental investors, “e