South African based independent African oil and gas company, SacOil, and Energy Equity Resources (EER) signed a memorandum of understanding (MoU) to explore oil and gas opportunities in Nigeria, West Africa.
SacOil establishes joint-venture
“The Republic of Nigeria is one of the most prolific oil and gas countries in Africa, with significant investment opportunities available in the current economic climate,” the oil and gas firm said in a statement.
Through the MoU, the joint-venture, SacOil Energy Equity Resources Ltd (SEER), has been awarded a 12-month contract for the purchase of Nigerian Crude Oil Grades by the Nigerian National Petroleum Corporation (NNPC).
[quote]SacOil explained in a company statement that SEER is the contracting party to the agreement for the sale and purchase of nigerian crude oil with the NNPC, adding that the Crude Oil Agreement provides SEER with the right to acquire crude oil from NNPC for onward sale.
“The amount of offtake by SEER is dependent on the aggregate crude production in Nigeria and the prevailing global oil price.
The company added: “The revenue generated from the sale of the crude allocation will contribute meaningful income to SacOil and will support SacOil’s growth and investment strategy across the oil and gas value chain on the African continent.”
Commenting on the partnership
SacOil CEO, Thabo Kgogo, said: “This announcement is aligned with our previously communicated strategy to focus on cash-generative, income producing activities in both upstream, refining and downstream.
“Nigeria is a prolific hydrocarbon nation and the largest exporter of crude oil on the African continent.”
Kgogo concluded: “We are pleased to have secured this crude allocation for trading as it provides us with a structured and measured exposure to this attractive market. We look forward to working with EER and the NNPC in future opportunities in the Nigerian oil and gas sector.”