AIM-listed Sirius Petroleum, the investing company focused on oil and gas exploration and development opportunities in Nigeria, has announced that, following completion of technical due diligence on the Ororo field, the Company has entered into a US$10m revolving pre-payment facility and commercial offtake agreement in respect to the sales of the crude produced from the Ororo field, with BP Oil International, a subsidiary of BP.
The Agreement provides for the Company to draw down up to US$10 million, in pre-payment finance following commencement of production from the Ororo Field. The interest rate on any pre-payment amount drawn down will be charged at Libor + 9% per annum and will be repaid from crude oil sales.
Under the Agreement, Sirius can request that BP provides pre-payment finance for either or both of the first two cargos of crude oil, each for up to US$10 million, scheduled to be lifted in 500,000 barrel parcels or more. The prepayment facility will be conditional upon the Ororo field achieving certain daily production levels, which are lower than the flow rates previously achieved by Chevron on Ororo 1, which have been underpinned by the recent Competent Persons Report (‘CPR’).
Bobo Kuti, CEO of Sirius, commented:
‘The revolving prepayment facility and offtake agreement with BP supports the multi-well campaign on the Ororo field. It underpins our strategy to develop Ororo along with our world class oilfield service partners COSL, Schlumberger, and Add Energy. In addition, the relationship with BP will enhance our development programmes in Nigeria going forward.'(Source: Sirius Petroleum)