Eland’s ELcrest on Monday issued a statement confirming the renewal of Oil Mining Lease 40 (OML 40) for a period of 20 years.

Eland’s Elcrest subsidiary will now be subject to a ‘renewal bonus’ of US $6.3m to be payable to the Nigerian authorities within the next 90 days.

Elcrest will also be required to commit to signing a gas monetisation and sales agreement within five years.

“We are delighted to confirm the formal renewal of our OML 40 licence,” said George Maxwell, Eland chief executive.

“This continues the OML 40 Joint Venture’s excellent opportunity to continue the significant investment into OML 40’s work programme; continuing to increase production, proven reserves, cash flow local employment and government take.

“We look forward to a continuing positive partnership with Nigerian Petroleum Development Company and pushing together to make OML 40 one of the most significant license blocks in Nigeria.”

OPL 40 hosts the Opuama field where production rates recently reached around 30,000 barrels of oil per day, and, continues to be enhanced through the addition of new wells.

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