Oil Company, Aradel, Strikes First Oil in Rivers as FG Invites Firms to Bid For 27 Others

Oil Company, Aradel, Strikes First Oil in Rivers as FG Invites Firms to Bid For 27 Others

  • Aradel Holdings Plc has announced that it has struck its first oil in the Omerelu Area of River State
  • The company noted that the discovery will boost its oil production capabilities and contribute to Nigeria’s economy
  • The development comes as the Nigerian government announced the addition of 17 deep offshore blocks to the 2024 Licensing Round

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Aradel Holdings Plc has announced the successful re-entry of the first oil in Omerelu River State.

The company announced the successful re-entry of Well 21st, attaining the first oil on Friday, May 31, 2024.

Aradel strikes oil, NNPC joint venture
Nigerian oil company discovers another oil reserve in Rivers Credit: Novartis
Source: Getty Images

New oil discovery to boost Nigeria's economy

Aradel noted that attaining First Oil from Omerelu will boost its production capabilities and contribute to its growth and sustainability goals through its subsidiary, Aradel Energy Limited.

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It said it received approval for well-testing, which will lead to converting the field’s Petroleum Prospecting License (PPL) and ultimately to a Petroleum Mining License (PML), following the regulatory procedures.

The well re-entry was part of the oil company’s 2024 exploration appraisal drilling campaign to develop and utilize existing assets.

BusinessDay reports that Aradel said it adopted the highest safety standards and levels of environmental stewardship throughout the process.

Also, it said it employed the latest and cutting-edge technology and innovative methodologies in its exploration practices.

Aradel owns 100% of Omerelu's Field

Aradel’s chief executive officer and managing director, Adegbite Falade, said the achievement marks a pivotal moment in the company’s ongoing commitment to resource development and growth.

According to him, the Omerelu Field will extend the firm’s reserves profile and production levels as it reinforces its strategic vision to deliver sustainable energy solutions for economic advancement.

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The Omerelu Filed is now PPL 247, about 42 kilometres northwest of Port Harcourt in Rivers State. 

Aradel acquired a 100% stake in the Omerelu Field in 2014 from the NNPC/Chevron Joint Venture.

FG lists oil wells for sale

The development comes as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the addition of 17 deep offshore blocks to the 2024 Licensing Round. 

The move is part of the commission's efforts to enhance exploration activities and increase production in the Nigerian upstream sector.

The NUPRC invited investors to bid for 12 oil blocks and seven deep offshore assets in the 2024 marginal fields bid round. 

Also, on June 12, 2024, Punch reported that the federal government increased the number of oil blocks on offer in the 2024 marginal bid round.

Gbenga Komolafe, the NUPRC chief executive, announced the additional oil blocks bidding round for 2024 in a statement issued in Abuja on Tuesday, June 19. Komolafe noted that the commission is committed to maximizing the country's abundant oil and gas resources.

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Aiteo shuts down oil field over leaks

Legit.ng reported that the Nembe Creek oil field, with 150,000 barrels of crude oil daily, was shut down on Monday, June 17, 2024.

Aiteo shuts down operations to forestall further leaks

According to reports, Aiteo noted that its Oil Spill and Emergency Response Team was activated and dispatched, and all the production from OML 29 was shut down as a precautionary measure to forestall the impact of the incident.

Senegal becomes oil-producing country in Africa

Legit.ng earlier reported that Senegal has become the latest oil-producing country in Africa, officially joining the list of global oil producers.

The country began producing oil for the first time, with the Sangomer deep-water project aiming to produce 100,000 barrels daily.

The Australian energy company Woodside and Senegal disclosed in a statement that it is a historic day for the country and highlighted the importance of the achievement.

Source: Legit.ng

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Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng