Nigerian companies pay signature bonuses for offshore blocks

Nigerian companies paid signature bonuses to signify their intentions to take over oil blocks won during the 2005 bid round.

Offshore staff

(West Africa) - Local sources report that Nigerian companies Conoil, Oando Plc, and Saraha Energy, along with Nigerian Agip Oil Co., paid signature bonuses to signify their intentions to take over oil blocks won during the 2005 bid round.

Conoil paid $200 million for a deep offshore block and another continental shelf block while Agip paid $16 million for OPLs 282 and 276.

Oando along with its partner, CAMAC, paid $25 million, and Sahara Energy along with British Gas paid $51.5 million for deep offshore block 332.

A summary of the results of the licensing round showed that about $999.25 million was expected to be earned from from the eight deep offshore blocks.

02/16/06

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