Aradel Holdings Plc, a Nigerian energy company, has finalized its $19.5 million acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint Venture.
The company disclosed this strategic expansion alongside its 2024 audited results, reinforcing its multi-field cluster development strategy in the Niger Delta.
By acquiring the Olo and Olo West fields, Aradel strengthens its upstream portfolio and expands its asset base.
Aradel stated that these fields will complement its existing operations, including the Ogbele Field (OML 54), Omerelu (PPL 247), and the OPL 227 joint venture. The acquisition aligns with Aradel’s long-term goal of developing a contiguous production hub, optimizing infrastructure, and cutting operational costs through shared facilities.
Africa Oil & Gas Report highlighted that the Olo fields, located in the Niger Delta basin, contain significant untapped reserves.
Aradel plans to leverage its technical expertise to boost production, integrating crude oil, gas, and refined product development. The company intends to implement advanced drilling technologies and infrastructure synergies to maximize output from the newly acquired assets.
With these fields now in its portfolio, Aradel is set to execute a multi-field cluster development strategy. According to the Africa Oil & Gas Report, this approach will integrate nearby fields to improve production efficiency, reduce downtime, and lower costs. The proximity of the Olo fields to Aradel’s Ogbele asset will enable the company to utilize shared infrastructure, including pipelines, processing plants, and export terminals.
Industry experts recognize cluster development as a breakthrough for marginal fields, which often struggle with high standalone development costs. By pooling resources, Aradel aims to achieve economies of scale, improve recovery rates, and extend asset lifespans. Additionally, the company has acquired a 5.14 percent equity stake in Chappal Energies Mauritius Limited, further expanding its presence in Africa’s upstream sector.
Aradel’s revenue surged to N581.2 billion in 2024, up from N221.1 billion in 2023, primarily due to a 244.6 percent rise in export crude oil revenue, which contributed 64.3 percent of total earnings.
The company’s profit after tax skyrocketed to N259.1 billion, a sharp increase from N53.7 billion the previous year. This exceptional growth resulted from higher production volumes, improved crude oil evacuation systems, and strategic acquisitions like the Olo and Olo West Marginal Fields.
Operationally, Aradel reported major improvements. Crude oil production rose by 41.2 percent to 13,751 barrels per day (bbls/day), while gas production climbed by 21.9 percent to 32.4 million standard cubic feet per day (mmscfd). The company also sold 240.5 million liters of refined petroleum products, reflecting a 14.5 percent increase from 2023. These gains stemmed from greater utilization of the Trans Niger Pipeline (TNP) and the Alternative Crude Evacuation (ACE) system, which minimized losses and improved efficiency.
Throughout 2024, Aradel made strategic moves to solidify its market position. It completed the marginal fields acquisition from TotalEnergies/NNPC, secured a 5.14 percent stake in Chappal Energies Mauritius Limited, and listed on the Nigerian Stock Exchange (NGX) in October 2024, enhancing share liquidity and investor confidence. The company also progressed with its drilling campaigns, completing Phase 1 and launching Phase 2 to further strengthen production capacity.
Aradel generated N311.9 billion in operating cash flow, marking a 124.4 percent increase from 2023. Strong margins and operational efficiency fueled this growth. Although the company raised capital expenditures to N136.8 billion, up 179.9 percent year-on-year, for drilling and infrastructure, it maintained a healthy free cash flow of N175.1 billion.
source: businessday.ng
African Energy Council