Ardogreen Energy Limited, a Nigerian energy company, is embarking on an ambitious venture to secure a Petroleum Mining Lease (PML) for the Olua Field, currently operating under Petroleum Prospecting Licence (PPL) 203. This strategic move is projected for completion by the second quarter of 2025 and signifies a critical step in Ardogreen’s evolution into a fully integrated Exploration and Production (E&P) player. The company’s pursuit of the PML hinges on a recently formalized Risk Service Agreement (RSA) with HSI Energies Limited, a comprehensive energy company with a strong presence in the Nigerian and international energy landscape. This collaboration leverages the expertise and resources of both entities to accelerate the development of the Olua Field and contribute to Nigeria’s national energy objectives.
The Risk Service Agreement outlines a comprehensive development plan for the Olua Field, encompassing the drilling of two exploratory wells, Olua-1 and Olua-2. This crucial exploration phase is designed to confirm the field’s commercial viability and accurately assess its hydrocarbon reserves. Beyond exploration, the agreement also includes the installation of essential field processing and transportation infrastructure. This infrastructural development will streamline the flow of extracted resources and ensure efficient delivery to downstream markets. By completing these critical steps, Ardogreen aims to fulfill the requirements for converting the existing prospecting license (PPL 203) into a full-fledged mining lease, granting the company the right to extract and commercialize the field’s resources.
The strategic partnership between Ardogreen and HSI Energies involves a farm-out arrangement, wherein Ardova Plc. and Petrodev Oil and Gas Limited, the parent companies of Ardogreen and joint license holders for the Olua Field, will assign a 20% working interest in the field to HSI Energies. This arrangement, subject to regulatory approvals, strengthens the collaborative framework of the project and leverages HSI’s extensive experience in petroleum exploration, refining, and field services. The farm-out structure not only distributes the financial risk associated with the project but also facilitates the sharing of technical expertise and operational resources, ultimately optimizing the development process.
The leadership at Ardogreen, Ardova, and HSI Energies have expressed strong optimism about the project and its potential implications for the Nigerian energy sector. Abdulwasiu Sowami, Chairman of Ardogreen, emphasized the agreement’s significance in the company’s strategic trajectory, marking a crucial step towards realizing Ardogreen’s ambition of becoming a leading E&P operator. Anthony Idigbe, Vice-Chairman of Ardogreen, highlighted the project’s alignment with national energy goals, particularly President Tinubu’s initiative to increase oil production by one million barrels, thereby boosting Nigeria’s economic growth and energy security. Chikezie Nwosu, Group CEO of HSI Energies, echoed this sentiment, emphasizing the agreement’s role in advancing HSI’s long-term strategy within the Nigerian energy market.
The collaborative structure underpinning the Olua Field development reflects a synergistic partnership between key players in the Nigerian oil and gas sector. Ardova Plc., a prominent downstream player with an extensive network of over 450 stations across Nigeria, brings its robust distribution infrastructure and market expertise to the table. Petrodev Oil and Gas Limited, specializing in the acquisition and development of oil and gas assets, contributes its expertise in asset management and project execution. HSI Energies, with its integrated operations spanning exploration, refining, and field services, completes the partnership by providing technical and operational capabilities critical to the project’s success. Ardogreen Energy Limited, operating under a Joint Operating Agreement with Ardova and Petrodev, provides the operational framework for the development of the Olua Field, leveraging the combined strengths of its parent companies and strategic partner.
The Olua Field development project carries significant implications for the Nigerian energy landscape, potentially contributing to the country’s economic growth and strengthening its position in the global energy market. By successfully securing the Petroleum Mining Lease and bringing the field to full production, Ardogreen and its partners aim to boost Nigeria’s oil output, aligning with the national objective of increasing production. The project also represents a significant investment in the Nigerian energy sector, creating employment opportunities and stimulating economic activity in related industries. Moreover, the collaborative approach adopted in the project showcases the potential of public-private partnerships in driving growth and innovation within the Nigerian energy sector, setting a precedent for future collaborations.
