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KonkNaija Media | May 2, 2016

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First E&P lusts after Chevron’s OML 83 & 85

First E&P lusts after Chevron’s OML 83 & 85

| On 15, Feb 2014

A company owned by former vice oil minister Henry Odein Ajumogobia finds itself in the strongest position to buy Chevron’s OML 83 and 85 after a lengthy disposal process.

Chevron’s stakes on OML 83 and 85 that lie in the shallow offshore in waters off Bayelsa state (president Goodluck Jonathan’s birthplace) took a lot longer to find a buyer than other assets of the American group in the Niger Delta .

Put back on several occasions, the sale is about to be completed, according to sources.

The firm that put in the best offer is First Exploration & Production headed by Nigeria’s ex foreign and oil minister, Henry Odein Ajumogobia.

The management team of First E&P is made up of several former Shell Nigeria executives, including Ademola Adeyemi-Bero, Cees Uijlenhoed (former finance director of Shell Afrique), Casper Kaars-Sijpesteijn and Emmanuel Enu.

Set up in 2010, First E&P has submitted bids in all recent auctions of stakes owned by the majors in the Niger Delta. Shortly after it was founded, the company bought out Shell’s assets on OML 34 in tandem with Petrolin, a company owned by Benin-born businessman Samuel Dossou .

Last year the group put in a bid for blocks 11 and 17 owned by Green Energy and Ali Grace Energy, firms owned by Anthony Adegbulugbe.

If it wins OML 83 and 85 the acquisition would be the group’s biggest ever. Reserves on the two blocks are estimated at roughly 250 million barrels while pockets of gas could yield 49 billion cu.ft per day.