MX Oil has agreed terms for the sale of its 5% stake in the Aje field offshore Nigeria to GEC Petroleum Development Co. (GPDC), a Nigerian company.
GPDC, a wholly owned subsidiary of Global Energy Co., operates two licenses offshore (OPLs 2009 and 2010) and two licenses onshore (OPLs 907 and 917), along with OML 149 in joint venture partnership with Eni/Nigerian AGIP and Seven Energy.
Under an agreement signed 2 February, GPDC has the right to acquire MX Oil's indirect investment in the Aje Field for US$18 million, to be paid in stages.
GPDC will then have the right to acquire the investment, which is most likely to be when initial oil production starts.
Aje, discovered in 1997, is operated by Panoro Energy and will be a two subsea well development with in FPSO, with two further wells to follow and a phase three in planning phase. Production is due to start in Q1 this year.