The partners on the Ororo field, offshore Nigeria, have been granted a three-year extension to the Ororo field licence (OML 95), by the Federal Ministry of Petroleum Resources (FMPR).

These partners are Sirius Petroleum with 40% interest, Guarantee Petroleum Company and Owena Oil & Gas.

According to Sirius Petroleum, the licence which took effect from May 1, 2016, was extended based on the payment of a Renewal Fee of $500,000 which it will raise by issuing 200.0 million shares to existing shareholders on or before July 29, 2016.

The Ororo field is located in shallow waters offshore Ondo State, in water depths between 23ft and 27 ft. The field is close to the Mina, West Isan, Ewan, Eko and Parabe fields, all of which are operated by Chevron.

Presently, talks have been finalized between the partners and the FMPR. Therefore, Sirius will pay the renewal fee which can be recovered under an agreement signed between the company, Guarantee and Owena Oil & Gas on October 10, 2011. The licence fee is however, cost recoverable from oil production, Offshore Energy Today reports.

Anita Fatunji