Peak assumes development of Nigeria's Bilabri oil field

Peak Petroleum Industries Nigeria will take over the finance and development of Bilabri oil field off Nigeria after signing a settlement agreement with Equator Exploration.

Oct. 3, 2007

Uchenna Izundu
International Editor

LONDON, Oct. 3 -- Peak Petroleum Industries Nigeria Ltd. will take over the finance and development of the Bilabri oil field off Nigeria after signing a settlement agreement with Equator Exploration Ltd.

Previously Equator Exploration was responsible for it under a finance and service agreement dated Apr. 2. Under the deal, Equator will keep a net profit interest of 5% in the Bilabri oil project and a paying interest of 12.5% in any gas development of the Bilabri and Owanare fields.

Equator said Peak will reimburse Equator for all project costs since June 1 on the field, which is on OML 122 license in Western Niger Delta (OGJ Online, Dec. 7, 2005). "Peak is negotiating new contracts for the services and equipment required for the Bilabri oil development to continue. Peak is expecting to conclude a financing agreement with a financial institution in the near term," it added.

Equator has spent $270 million in OML 122, including the Owanare discovery well.

Contact Uchenna Izundu at [email protected].