subject: How to Buy an Oil Well [print this page] How to Buy an Oil Well
Oil well can be bought from oil producing countries like Nigeria, Iran, Iraq, Kuwait, Saudi Arabia, Libya, Angola, Russia and the rest of other oil producing countries around the world. Offers for the sale of oil well are usually published from time to time. Oil well price is fixed depending on the millions of barrels in the well. Offers for the sale of oil are usually published from time to time. You can find prices ranging from $250,000 to $950 million (USD) depending on the amount of oil inside the well. Places where you are more likely to find oil wells for sale in USA and Canada are Texas, Alberta, Ohio, California, Oklahoma, Saskatchewan, Kansas and Kentucky.
Different countries have their respective process of selling discovered oil wells to investors so they can exploit the crude oil inside it and sell. I will talk mainly about the process of buying oil well from Nigeria. Your first step is to visit the Office of Ministry of Petroleum Resources whose office is located at Abuja. Nigeria has more than 1481 discovered oil wells with billions of oil reserves, excluding the ones which are yet to be discovered. There is a large potential for the sale of an oil block.
If you do not like the idea of visiting the ministry of petroleum resources to show your interest to buy oil well, then you may use private third party companies. Third party companies can inform you of producing oil wells in Nigeria which are available for sale as soon as they become available. The procedure for buying oil wells is simple and it is the same case with the purchase of crude oil.
The first clause requires the buyer to give LOI which will usually be in the name of the seller. Once the seller reviews it and finds it workable, he will return with an offer letter. The documents of the block will also be released to the buyer for verification purpose. When the buyer must have verified the documents and he is satisfied with the verification process, the next step is to meet one on one with the seller, otherwise known as the allotee. After successful discussion has taken place between the two parties. Sales agreement will be signed by the two principals. Payment will be done and the transfer of ownership of the oil well will take place.
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