OML 29, which holds the site of Nigeria’s first discovery, Oloibiri
field in addition to Nembe Creek field, Santa Barbara and Odeama Creek
fields, all producing is now at the center of tussle between two Russian
firms; Lukoil and L1 Energy.
Lukoil is Russia’s second largest oil company. The company was formed
in 1991 when three state-run, western Siberian companies merged. That
meant vertically integrating the three branches of the industry –
exploration, refining, and distribution – that were strictly separate
under the old Soviet system
Headquartered in Moscow, Lukoil is the second largest public company
(next to ExxonMobil) in terms of proven oil and gas reserves. The
company has operations in more than 40 countries around the world.
During the Obasanjo administration, Lukoil indicated interest in leading
a consortium of international and indigenous investors to acquire and
turn around the 210,000 bpd capacity Port Harcourt refinery that was
then slated for privatisation but the deal fell flat due to public
outcry. Recently, Lukoil outbid Rosneft and Gazpromneft-Noyabrskneftegaz
at auction for Siberian oilfields with a $1.66 billion.
For the OML 29 bid, Lukoil has held discussions with a consortium
made up of Nigerian crude oil traders; Taleveras headed by Igho Samani
and Benedict Peters’ IS45.
L1 Energy was founded less than a year ago as a subsidiary of
LetterOne Holding with the proceeds from Fridman’s sale of his stake in
TNK-BP and boasts of more than $20 billion disposable investment fund
for oil and gas assets. Their target is to make five or six investments
over the coming years with a global focus on either full takeovers or
acquisitions of major strategic stakes that allow significant influence.
Behind the $20 billion fund is billionaire Mikhail Fridman. German
Khan former CEO of TNK-BP will run the fund and he is assisted in turn
by the former boss of Carlyle’s energy team, Joao Saraiva e Silva who
will divide his time between L1 and Pamplona, another fund set up by
Fridman.
The fund’s advisors include some prominent oil executives, including
former BP CEO Lord Browne. Browne is now a partner at Riverstone
energy-focused equity fund. Also on the board is Andrew Gould, chairman
of BG Group and former CEO of Schlumberger, as well as Jim Hackett,
former chairman of Anadarko Petroleum Corp.
L1 Energy’s incursion into Nigeria has already altered the equation
for the OML 29 bid with various Nigerian companies scrambling to partner
it since the firm cannot submit a bid without a Nigerian partner.
Though L1 has not chosen any partner yet, but had held discussions
with Yinka Folawiyo & Sons, Nestoil, Seplat and South Atlantic
Petroleum (Sapetro) chaired by Theophilus Danjuma. OML 29 is currently
operated by Shell Petroleum Development Company (SPDC). The field
started oil production between late 1957 and early 1958 and the first
oil production from the field came at the rate of 4,928 barrels per day.
The production increased thereafter as more wells were completed and
put onto production
No comments:
Post a Comment