Ardogreen Energy, Andova Sign Risk Service Agreement with HSI Energies
Sunday Okobi
Ardogreen Energy Limited and its parent companies, Messrs Ardova Plc and Petrodev Oil and Gas Limited have formalised a Risk Service Agreement (RSA)with Messrs HSI Energies Limited for the development of the Olua Field on PPL (Petroleum Prospecting Licence) 203.
The companies stated that the scope of the agreement includes drilling the Olua-1 and Olua-2 wells and installing field processing and transportation facilities to facilitate the conversion of its PPL 203 into a Petroleum Mining Lease by the end of the second quarter of 2025.
A significant and related fallout of the RSA is for Ardova Plc and Petrodev Oil and Gas Limited to assign a 20 per cent working interest in the Olua Field to HSI Energies Limited in a farm-out arrangement, subject to all regulatory approvals.
Ardogreen Chairman, Abdulwasiu Sowami, in a statement said: “The transaction is a significant milestone in the realisation of Ardogreen’s vision of becoming a full-fledged E&P operator.”
Also, the Vice-Chairman, Anthony Idigbe, added that: “The transaction supports President Bola Tinubu’s one-million-barrel project to increase production by one million barrels.”
Meanwhile, the Group Chief Executive Officer of HSI Energies Group, Chikezie Nwosu, expressed excitement at the deal, which he said “enables HSI to pursue its long-term strategy in the Nigerian energy sector.”
Ardogreen Energy Limited is the operator under the JOA with Messrs Ardova Plc and Petrodev Oil and Gas Limited. The licence holders of the Olua field under PPL 203.
Ardova Plc is a leading indigenous player in the downstream oil, gas and integrated energy sector which has a network of over 450 stations spread across the six geopolitical zones of Nigeria.
Petrov Oil and Gas Limited is an indigenous Exploration and production (E&P) company focused on the acquisition of oil and gas assets.
On his own, HSI Energies Limited is a fully integrated energy company that produces, processes, transports, stores, and supplies oil and gas products in the Nigerian, West African and global markets.
The company boasts of key capabilities and services such as petroleum exploration and production, petroleum product refining, gas supply for an extensive gas station network, petroleum marketing, supply and trading, storage for LPG and bulk petroleum products, shipping and energy field services and supply of ancillary petroleum products.
