There are credible indications that Pan Ocean Oil Corporation (Pan Ocean) remains operator of OML 98 Joint Venture, contrary to previous information regarding revocation of seven licences including OML 98.
According to a source close to the matter, OML 98 has a history of more than 40 years, as such, it is a more delicate and complicated relationship between the Joint Venture partners, the Nigerian National Petroleum Corporation (NNPC) represented by NAPIMS – the investment and management arm of NNPC and the Pan Ocean Oil Corporation.
The source disclosed that, “as a matter of fact, representatives of the Federal Ministry of Petroleum Resources led by the Hon Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and Pan Ocean are currently engaging in high-level negotiations to resolve the issues of outstanding payment as well as related projects tied to the JV and other assets within the vicinity of OML 98.”
A meeting has been scheduled for early next month to iron out all matters regarding the asset and Pan Ocean has agreed to work with the government to ensure smooth resolution.
OML 98 is located in the Northern Delta Depobelt, and in the northern fringe of Niger Delta Basin. OML 98 covers an area of 523 km² in Edo and Delta State. Fields within the block includes the Ogharefe, Ologbo, Asaboro, Adolo, Owe, Ossiomo, Ona and Erimwindu fields. Pan Ocean commenced crude oil production at the Ogharefe field (OML 98) with an initial production of about 11,000bpd in 1976.
In December 1975, OPL 70/71 was converted to Oil Mining Lease (OML) 98. Pan Ocean has been in a Joint Venture with the Nigeria National Petroleum Company (NNPC) in respect of OML 98. As a Joint Venture (JV) partner, the NNPC has 60 percent working interest in OML-98 while Pan Ocean has 40 percent.