SacOil on Friday announced that it has entered into a memorandum of understanding with Energy Equity Resources (EER) to explore oil and gas opportunities in Nigeria.

According to SacOil, it had overseen the joint venture with EER to create SacOil Energy Equity Resources (Seer), which was granted a 12-month term contract by the Nigerian National Petroleum Corporation (NNPC) to acquire crude oil.

This agreement grants Seer the right to obtain crude oil from the NNPC for future sale. The volume to be acquired by the company depends on the total crude output in Nigeria as well as the current falling global oil prices.

Thabo Kgogo (photo), SacOil CEO has said that the income gotten from the sale of the crude acquired will add significant income to SacOil and will support SacOoil's growth and investment strategy across the oil and gas value chain on the African continent.

“This announcement is aligned with our previously communicated strategy to focus on cash-generative, income-producing activities in the upstream, refining and downstream [markets].  Nigeria is a prolific hydrocarbon nation and the largest exporter of crude oil on the African continent [and] we are pleased to have secured this crude allocation for trading, as it provides us with a structured and measured exposure to this attractive market. We look forward to working with EER and the NNPC on future opportunities in the Nigerian oil and gas sector,” Kgogo told Reuters.  

Anita Fatunji