13 September 2011, Sweetcrude, Lagos – US-based Blacksands Pacific has announced plans to spend at least $215 million on developing oil block OPL 2012 in the offshore Niger Delta after signing a deal with indigenous exploration and production companies.
Blacksands said it will fully fund the work programme, including exploration, appraisal, development and production of hydrocarbons within the block, including meeting the requirements for converting the block to an oil mining licence.
The company will also pay a signature bonus to the Department of Petroleum Resources and farm-in fees to Sigmund Oilfields, in return for a 40% equity and legal interest with an effective 60% economic interest in the project.
Sigmund currently owns 84% of the block after the parties to the Grasso Consortium – Grasso Nigeria, Oil and Gas Mission and Eurafric Oil field which originally won the contract for the licence transferred their stake to the group.
The Nigerian project is located in a zone bordered by fields held by Shell, NNPC, Addaz and Sunlink, the company said in an announcement.
There are currently eight prospects identified within the block, with part of it in the exploitation phase, while the remainder is at the exploration and development phase.