Africa Oil Corp., a Canadian oil and gas firm, has obtained a 20-year renewal for its Petroleum Mining Lease 52 (PML 52), covering the Agbami oil field off the Niger Delta coast. Granted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), this lease extension enables Africa Oil to continue production from one of Nigeria’s largest and most productive deep water fields. The Agbami field, known for its high-quality, light crude oil, is operated through subsea wells connected to a Floating Production Storage and Offtake (FPSO) vessel, with production originally starting in 2008.
The Agbami field, comprising subsea infrastructure and a dedicated FPSO, has achieved significant production milestones since its inception, including a peak rate of 250,000 barrels per day in 2009. As of the end of 2023, the field’s average daily production was approximately 98,000 barrels, with cumulative output reaching over one billion barrels. The Agbami field has multiple stakeholders, with Famfa Oil holding the largest interest (60%), followed by Chevron (32%) and Prime Oil & Gas (8%). Africa Oil’s planned acquisition of Prime’s assets will raise its indirect stake in PML 52 to 100%.
Africa Oil’s CEO, Roger Tucker, lauded the lease renewal as crucial for the company’s growth strategy in Nigeria, following similar long-term renewals for other fields. The planned acquisition of Prime’s assets, which would secure full ownership of the field’s production, awaits regulatory approvals, including from the Nigerian Federal Competition & Consumer Protection Commission and Nasdaq Stockholm, alongside completion of related corporate restructuring.
