Under the terms of the three-year deal, Sirius can deliver up to 60,000 barrels per day from its Ororo oilfield in Nigeria’s shallow-water OML 95 licence to Glencore, who will have exclusive rights to market the crude on behalf of Sirius for the period of the deal.
According to the UK independent, the exclusivity offtake agreement included the provision for a conditional pre-financing facility of up to $65 million, which will be netted against the initial sales of crude production.
The company will be able to draw-down funds for the development of its oil assets following satisfactory approval by Glencore’s technical team, who will work alongside Sirius to bring the fields online in the near term.
Sirius is also planning to receive an additional GBP 60 million ($93.2 million) in funding through the issue of 900 million warrants. Funds will go towards maximizing output from its existing assets, as well as to acquire additional assets with near-term production potential.
Sirius owns 40% of the Ororo oilfield in the shallow-water OML 95 licence off Nigeria, where it is planning to re-enter the Ororo-1 well originally tested by Chevron in 1986.