KEY POINTS
- Ardogreen and HSI Energies will develop Nigeria’s Olua Field under PPL 203, which will involve drilling and field processing.
- 20% working interest farmed out to HSI Energies, subject to regulatory approval.
- Project aligns with Nigeria’s goal of increasing oil production by one million barrels daily.
Ardogreen Energy Limited, along with its parent companies, Ardova Plc. and Petrodev Oil and Gas Limited has entered into a Risk Service Agreement with HSI Energies Limited to advance development of the Olua Oil Field under Petroleum Prospecting License (PPL) 203.
The agreement, announced on Tuesday, includes plans for the drilling of two wells, Olua-1 and Olua-2, as well as the installation of field processing and transportation facilities.
Ardogreen farms out 20% interest
The project is aimed at transforming PPL 203 into a Petroleum Mining Lease by the second quarter of 2025. As part of the agreement, Ardogreen will farm out 20 percent of the working interest in the Olua Field to HSI Energies, pending regulatory approval.
Abdulwasiu Sowami, chairman of Ardogreen, described the agreement as a key step in realizing the company’s vision to become a full-fledged exploration and production operator. “This transaction marks a major milestone for Ardogreen in our growth journey,” Sowami said.
Supporting Nigeria’s energy objectives
This development aligns with President Bola Tinubu’s ambition to increase Nigeria’s daily oil production by one million barrels. Ardogreen’s vice chairman, Anthony Idigbe, highlighted that the partnership supports this national energy goal and strengthens Nigeria’s energy security.
“This collaboration is crucial in advancing the country’s oil production and energy security,” said Idigbe. Chikezie Nwosu, CEO of HSI Energies, noted that the deal expands HSI’s long-term strategy in Nigeria’s growing energy sector.
Collaborative effort to strengthen upstream sector
Ardogreen, along with Ardova and Petrodev, will manage the Olua Field through a Joint Operating Agreement. Ardova operates over 450 fueling stations across Nigeria, while Petrodev focuses on oil and gas asset management. HSI Energies brings extensive experience in petroleum exploration and production, positioning the project for success.
First oil output from the Olua Field is expected by mid-2025, marking a significant step in enhancing Nigeria’s upstream oil capabilities and securing its position as a leading energy producer in Africa.
