Seplat, Belema Oil partnership to grow OML 55 output to 20,000b/d

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Port Harcourt – The partnership between two local companies Seplat Petroleum Development Company Plc and BelemaOil on Oil Mining Lease, OML, 55 is expected to grow oil production from the asset to about 20,000b/d, up from current 12,000 barrels per day, b/d,.

The National Petroleum Investment Management Services, NAPIMS, recently inaugurated an Asset Management Team, AMT, for the two companies, to operate the OML 55 oil wells in Rivers State.

Under the arrangement, the oil firms agreed to operate the oil wells for a period of six years for sustainable economic growth of the stakeholders and the host communities.

Inaugurating the management team, Mr. Dafe Sejeb, Group General Manager of NAPIMS – a subsidiary of the Nigerian National Petroleum Cooperation, NNPC – expressed optimism about the potentials of the asset.

He specifically expressed the hope that the partnership would increase the production rate of the asset from the present 12,000 barrels per day to about 20,000bpd, adding that the development would be of immense benefit for the nation’s economy giving the current economic recession.

Also speaking, the President and Founder of BelemaOil, Mr. Jackreich Tien, said the partnership between his company and Seeplat are in the areas of technology, finance as well as human capital and community development, as well as financial collaboration.

“This (partnership) also extends to the strategic financial collaborations.The essence is to create a module where Seplat and BelemaOil will come together to work as a team to create and unlock the hydro-carbon values of OML 55.

“In line with the agreement signed by the two companies, Seplat personnel will lead the operating management team, while BelemaOil will deputise. However, in terms of the management team, BelemaOil Managing Director is the head of the management team while Seplat Managing Director is the deputy,” he said.

In his speech, the Chief Executive Officer of Seplat Petroleum, Mr. Austin Avuru, said the partnership agreement considered the host communities as the primary stakeholders in the operation of the OML 55 oil wells.

He said: “The host community is the primary stakeholder in this venture. Everyone of the four segment (the host communities, staff of the companies, government and shareholders of these companies) must benefit from this venture.

“In the case of the host communities, it is not about appropriating any shares to them, it is about extracting value out of the asset and distributing a lot of the values to the communities, in terms of employment, engaging entrepreneurs within the host community to work and earn a decent living, and in terms of enhancing the quality of living for the people the host communities”.

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