Africa Oil Corp has secured a 20-year extension for its Petroleum Mining Lease 52, ensuring the ongoing operation of Nigeria’s Agbami oil field.
This renewal supports production of high-quality light crude oil, which has peaked at 250,000 barrels per day since 2008.
Africa Oil Corp, a Canadian oil and gas company, has secured a significant 20-year renewal of its Petroleum Mining Lease 52 (PML 52) from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This renewal, therefore, guarantees the continued production of the Agbami oil field, one of Nigeria’s largest deepwater discoveries, located approximately 113 kilometres off the coast of the central Niger Delta.
The Agbami field, discovered in 1998, is renowned for its high-quality light crude oil.
It operates through advanced subsea wells connected to a Floating Production Storage and Offtake (FPSO) vessel, thus facilitating efficient oil extraction.
CEO Roger Tucker expressed his satisfaction with the renewal, stating that it solidifies Africa Oil’s long-term production outlook.
Moreover, the field has seen considerable production success, achieving peak output of 250,000 barrels of oil per day (bopd) in 2009.
As of 31 December 2023, the average production rate was around 98,000 bopd, with cumulative production exceeding 1,089 million barrels.
In terms of ownership, Famfa Oil holds a 60 per cent interest in the PML 52 agreement, while Chevron and Prime Oil & Gas hold 32 per cent and 8 per cent, respectively.
Consequently, Africa Oil is in the process of increasing its stake in the PML to 100 per cent, pending necessary regulatory approvals.
With the FPSO designed for long-term operation, the Agbami field will play a pivotal role in Nigeria’s oil landscape for years to come.