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ADM Energy and local partner qualify for Nigeria's marginal oilfield bid round

“The bid round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment,” said CEO Osamede Okhomina

ADM Energy PLC -

ADM Energy PLC (LON:ADME) has qualified to participate in the Nigerian government’s first oilfield licence bid round since 2003.

The AIM-quoted company is participating in the 2020 marginal field bid round as the exclusive technical partner of local oil and gas service management company, OilBank International.

READ: ADM Energy appoints REYL to support development of energy projects in Nigeria and West Africa

Some 57 marginal fields are being offered up by the Nigerian Department of Petroleum Resources (DPR), covering onshore, swamp and shallow offshore fields.

ADM and OilBank successfully demonstrated the required technical and financial capabilities and have now pre-qualified for the second stage of the bid round, the companies said, which consists of technical and commercial bid submission that are due to be submitted by the end of August.

As part of a memorandum of understanding (MOU) between the two compamies, if OilBank is awarded a licence after the bid round, ADM said it intends to enter into a substantive agreement with OilBank under which the UK-listed company expects to participate and invest in the development of any awarded fields.

Osamede Okhomina, chief executive of ADM, said: “We are delighted to have pre-qualified for the submission stage of Nigeria's 2020 Marginal Field Bid Round in partnership with OilBank, an indigenous company with a vastly experienced board and management team. 

“The bid round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment.”

He added: “The MOU with OilBank gives us a high-quality local partner to work alongside our team of expert technical advisers. This, combined with the Trafigura strategic alliance for up to US$100mln of pre-financing, means we are in a strong position to evaluate and finance investment into attractive oil and gas assets.”

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Price: 5.901 GBX

AIM:ADME
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