Oando Exploration and Production Limited, OEPL, a subsidiary of Oando Plc, has acquired 40 per cent participating interest in the Qua Iboe field locted in Oil Mining Lease, OML 13, subject to approval by the regulatory authorities.

The development followed the recent signing of a farm-in agreement between Oando and Network Exploration & Production Nigeria Limited, NEPN.

A statement from Oando’s spokesman, Mr. Meka Olowola, said upon the approval by the Minister of Petroleum Resources, Oando would also be designated as “the Financial and Technical Services Partner, delegated to perform some of the technical and projectmanagement duties and obligations of the operator in the development of the Qua Iboe field.”

The field, which was formerly a Shell Petroleum Development Company of Nigeria, SPDC asset was awarded to NEPN during the2003 Marginal Field Round.

Located onshore near the mouth of the Qua Iboe River in Akwa Ibom State, the acreage is about two kilometers from Mobil Producing Nigeria, MPN’s Qua Iboe Terminal.

Commenting on the acquisition, the Chief Executive Officer, OEPL, Mr. Pade Durotoye, said, “This asset is estimated to contain about11.3 million barrels, mmbbl of 2P reserve, which immediately increases our reserve base by about 50 percent.

“We are excited that the post-drilling mapping along with new seismic interpretation supports technical and economic producibility of the asset. Our selection as the technical partner further underscores our world class asset development and project delivery capabilities.”

The Group Chief Executive, Oando Plc, Mr Wale Tinubu, on his part said, “This strategic acquisition is consistent with our aspiration to expand our E&P portfolio with a balanced mix of producing or near term assets and organic growth.

“The Qua Iboe field will be the third Marginal Field with pre-existing proven undeveloped reserves in Oando’s portfolio. Subject to all regulatory approvals, our immediate objective is to fast-track the development programme towards achieving early production thereby enhancing stakeholder value.”

OEPL and NEPN signed all agreements relating to the transaction on the February 2, 2012, and have subsequently filed an application with the Department of Petroleum Resources, DPR, for the consent of the minister.