Table of Contents
Key Points
- Aradel Energy acquires 100% stake in Olo and Olo West fields for $16M plus $3.5M in deferred payments, expanding its energy portfolio.
- The fields, located in Eastern Niger Delta, were previously part of OML 58; Aradel will manage them pending regulatory approvals.
- CEO Adegbite Falade sees acquisition as a key step in enhancing Nigeria's energy infrastructure and sustainable solutions.
Aradel Energy, a subsidiary of Aradel Holdings, an integrated energy group led by Nigerian businessman Ladi Jadesimi, has acquired a 100 percent stake in the Olo and Olo West marginal fields from TotalEnergies EP Nigeria and the Nigerian National Petroleum Company Limited. The acquisition, valued at $16 million plus an additional $3.5 million in deferred and conditional payments, marks a significant expansion for the integrated energy group.
The Olo and Olo West Fields, located in the Eastern Niger Delta, approximately 80 kilometers northwest of Port Harcourt, Rivers State, were previously part of Oil Mining Lease (OML) 58. Following the acquisition, Aradel Energy will assume control of the Petroleum Mining Lease for Olo and the Petroleum Prospecting License for Olo West, pending payment of ministerial consent fees and completion of approved field development plans.
Aradel CEO highlights strategic acquisitions to bolster Nigeria’s energy security
Aradel’s CEO, Adegbite Falade, highlighted the acquisitions as a pivotal step in the company’s strategy to enhance energy security in Nigeria through both organic and inorganic growth. “The addition of Olo and Olo West marginal fields to Aradel’s portfolio of assets is a significant inorganic growth milestone in furtherance of Aradel’s vision and long-term strategy to provide sustainable energy solutions that support economic growth,” Falade, said.
Falade also expressed gratitude to the Nigerian Upstream Petroleum Regulatory Commission and the Ministry of Petroleum Resources for their support in facilitating the transaction within the framework of the Petroleum Industry Act. He praised NNPC and TotalEnergies for their commitment to increasing Nigeria’s oil and gas production, particularly from marginal fields.
Aradel's revenue soars 442% in Q1, Omerelu field kickstarts drilling campaign
Aradel Holdings, founded in 1992 as Niger Delta Exploration & Production Plc, has grown into a fully integrated energy company with diverse oil and gas assets, including a modular refinery. In May, the company achieved its first oil production from the Omerelu Field, marking a successful launch of its 2024 drilling campaign.
The company reported a remarkable revenue surge in the first quarter of 2024, boasting a 442 percent increase to N101.16 billion ($67.79 million) compared to N18.66 billion ($12.5 million) in the same period last year. Crude oil also saw a robust 36-percent increase, reaching 13,250 barrels per day during the first quarter of 2024.
Ladi Jadesimi, Chairman of Aradel Holdings, continues to play a pivotal role in the Nigerian energy sector, with his leadership extending to other industries, including finance and real estate. His vision for Aradel remains focused on expanding the company’s footprint and contributing to Nigeria’s energy landscape.
