Sirius Petroleum signs $10m offtake agreement with BP subsidiary
Sirius Petroleum has entered into a $10m revolving pre-payment facility and commercial offtake agreement relating to sales of crude oil from its Ororo field with BP subsidiary, BP Oil International.
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The agreement allowed Sirius to draw down as much as $10m in pre-payment financing for either or both of the first two cargoes of crude oil which were scheduled to be lifted, once production at the field has commenced.
Repayment will be made in the form of crude oil sales at an interest rate of Libor plus 9%.
The pre-payment facility is conditional on the Ororo field achieving specific daily production levels, which are lower than the flow rates previously achieved by Chevron on Ororo 1.
Bobo Kuti, chief executive of Sirius, said, "The revolving prepayment facility and offtake agreement with BP supports the multi-well campaign on the Ororo field. It underpins our strategy to develop Ororo along with our world class oilfield service partners COSL, Schlumberger, and Add Energy. In addition, the relationship with BP will enhance our development programmes in Nigeria going forward."
As of 1305 BST, Sirius shares had advanced 9.94% to 1.30p.