ADM Energy PLC has announced the successful completion of the 14th lifting at the Aje Field which is part of OML 113 offshore Nigeria. The natural resources investing company holds a 5% crude entitlement in the field.
Due to the volatility of the oil market because of the coronavirus pandemic, certain Aje Partners earlier this year decided to defer oil sales and store production on the FPSO which can hold as much as 750,000 barrels. This led to the company and other partners not partaking in the 13th Lifting that took place in March 2020, availing the company the chance to benefit from the recovery in the global oil prices during the intervening period.
According to the published statement by ADM Energy on the feat, “the Lifting totalled 557,091 barrels with a net share of 33,056 barrels to ADM, which equates to ADM’s paying interest of approximately 6%. The proceeds of the Lifting will be applied against the project debt, significantly reducing the outstanding balance. The nominated offtake partner for the Lifting was Mercuria Energy Group Ltd, the global integrated energy and commodity trading company.”
Commenting on the 14th cargo lifting, the Chief Executive Officer of ADM Energy Plc, Osamede Okhomina said, “Faced with market volatility earlier this year, we chose to take advantage of the large storage capacity onboard the FPSO and to defer oil sales from Aje. It is therefore very pleasing to have now competed the 14th lifting at a significantly higher price than would have been possible earlier in the year.
“We expect to further benefit in the coming months from rising production at Aje in H2 2020, increasing our stake in the asset as we conclude the EER transaction, and a further improvement in the oil price forward curve.”
