Gulf Oil and Gas accountACCOUNT

Afren Owned Firm Buys Nigeria Oil Block OML 26

Source: www.gulfoilandgas.com 12/1/2011, Location: Africa

Share |
First Hydrocarbon Nigeria Limited ("FHN") has announced that it has completed the acquisition of a 45% interest in OML 26 from the Shell Petroleum Development Company of Nigeria Ltd ("SPDC"), Total E&P Nigeria Ltd ("Total") and Nigeria Agip Oil Company ("Agip"), together the "SPDC Joint Venture". FHN has also announced that it has reached completion on financing facilities totalling US$280 million enabling it to fully fund the acquisition cost and it's share of future capital requirements associated with the initial development of the block. Afren plc ("Afren" or the "Company") holds a 45% shareholding in FHN.

The announcement follows the agreement signed in October 2010 and the receipt of all necessary Government and customary approvals. FHN will partner with Nigerian Petroleum Development Company ("NPDC"), the oil and gas exploration and production subsidiary of Nigerian National Petroleum Company ("NNPC"), in the re-development of the block. The partnership follows and builds upon the Strategic Alliance established between FHN's Technical Service Partner, Afren plc, and NPDC in November 2009.

Highlights
u OML 26 includes two producing fields and three proved undeveloped assets with significant exploration upside.

u Estimated maximum investment of US$187.5 million by FHN (acquisition cost of US$147.5 million and estimated US$40 million net capex requirement for phased full field development of Ogini and Isoko fields).

u Independently certified gross recoverable 2P reserves and contingent resources of 184 mmbbls at the producing Ogini and Isoko fields.

u Estimated 144 mmboe of gross contingent resources at the undeveloped Aboh, Ovo and Ozoro fields.

u Significant exploration potential identified with gross prospective resources estimated at 615 mmboe.

u Current combined gross production of circa 6,000 bopd at Ogini and Isoko; phased work programme, including facilities upgrade, to increase production to 40,000 bopd within four years.

u FHN and Afren will continue to acquire and develop substantial oil and gas assets in Nigeria.

A landmark transaction predominantly financed by Nigerian institutions

u FHN has secured up to US$230 million of senior secured reserves based debt from Nigerian institutions including FCMB, Stanbic and Skye Bank; and a US$50 million debt facility from the African focused Kingdom Zephyr's PAIP II Fund.

u FHN's acquisition cost and its share of future capex fully funded through existing cash resources and new facilities secured (no cash acquisition and capex cost to Afren).

u US$130 million acquisition facility previously arranged by Afren is not required by FHN and will not be utilised.

Osman Shahenshah, Chief Executive of Afren, commented:
"Afren's support of First Hydrocarbon Nigeria's acquisition of a 45% stake in OML 26 is another important milestone in our long-term commitment to the indigenous oil and gas sector in Nigeria. This builds on the established technical and operational track record, gained through the successful Okoro and Ebok greenfield developments, together with its indigenous partners AMNI and Oriental. This acquisition is a strong endorsement of Afren's long term strategy, of working with indigenous companies to reactivate fallow assets held by the major international oil companies in Nigeria, and further builds on our unique position in sub Saharan Africa's largest oil and gas province. Importantly the acquisition is highly accretive to Afren shareholders, with all funding associated with the transaction arranged by FHN".

Acquisitions and Divestitures News in Nigeria >>

Australia >>  12/13/2017 - Cue Energy Resources Ltd (CUE) is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, it has agreed to extend the 42.5...
Russia >>  12/12/2017 - NOVATEK has concluded an agreement to acquire Chernichnoyefrom oil company 'Mangazeya' JSC. The transaction is expected to close in early 2018. ...

United Kingdom >>  12/11/2017 - Premier has entered into a sale and purchase agreement (SPA) to sell its entire equity interest in the Esmond Transportation System (ETS) pipeline to ...
United States >>  12/11/2017 - Oasis Petroleum Inc. has entered into a definitive purchase and sale agreement with Forge Energy to acquire 20,300 net acres in the Delaware Basin (th...

United States >>  12/8/2017 - CMA CGM Group, a world leader in maritime transport, announces that it has completed the acquisition of MERCOSUL Line. MERCOSUL Line is one of the lea...
Malaysia >>  12/6/2017 - Hibiscus Petroleum, Malaysia’s first listed independent oil and gas exploration and production company, announced that it has received unconditional c...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |

Oil & Gas Projects in Nigeria >>

More News

 

Oil & Gas Companies in Nigeria >>


Related Links

AO BJ BW CD CG CI CM DZ EG ET GA GH GM GN GQ GW KE LR LY MA MG ML MR MZ NA NE NG RW SC SD SL SN SO ST SZ TD TN TZ UG ZA ZM
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.