By Teddy Nwanunobi
Nigerian-owned oil and gas production solutions company, Eunisell, has entered into an agreement with natural resources investment company, ADM Energy, to carry out development of the Barracuda Field in licence OML 141, and associated work-related activity in Nigeria.
The announcement, on Monday, which came from the AIM-traded firm, however, explained that the deal is a non-binding collaboration agreement, adding that the terms of the agreement are subject to the completion of certain due diligence.
It added that it was both parties’ intention, together with the risk sharing consortium on the Barracuda Field that a formal agreement would be reached ahead of any work starting.
The collaboration could be terminated by mutual consent.
ADM Energy said that Eunisell has “decades of experience” in engineering, production, operations and enhanced production techniques within Nigeria.
It added that the two companies intended to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda Field in which ADM recently invested.
Activities under the intended scope of work could include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services.
Following discussions, Eunisell could consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at an award of contract.
“The collaboration agreement with Eunisell, one of Nigeria’s leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold.
“With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs.
“We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141,” ADM Energy’s Chief Executive Officer, Osamede Okhomina, said.
Valuechain reports that shares in ADM Energy were down 0.82 per cent at 3.62p earlier in the morning.