UK-listed Sirius Petroleum has signed an offtake deal to supply Glencore Energy with crude oil from its near-term production projects offshore Nigeria
Under the terms of the agreement, Sirius Petroleum will deliver up to 60,000 bpd to Glencore Energy, which will have exclusive rights to market the crude oil on behalf of Sirius Petroleum for a three-year period.
Sirius Petroleum owns 40 per cent of the Ororo oilfield in the shallow water OML 95 licence offshore Nigeria, where it is planning to re-enter the Ororo-1 well originally tested by Chevron in 1986.
The deal also includes the provision for a conditional pre-financing access to Sirius Petroleum of up to US$65mn, which will be netted against the initial sales of crude production by Glencore Energy.
Sirius Petroleum is also planning to receive an additional US$93.2mn in funding through the issue of 900mn oil warrants. The funds will be utilised towards maximising output from its existing assets, as well as to acquire additional assets with near-term production potential.
