News

January 28, 2010

Afren Adds Another Piece To Its Planned Production Hub In Nigeria With Farm-In To OML115

Afren plc, the ambitious E&P stitching together a patchwork of development projects in Nigeria, has added to its footprint in the West African energy powerhouse by agreeing joint venture terms with Oriental Energy and Energy Equity Resources. Afren has paid US$6 million upfront to buy into OML115 in the south east of Nigeria, which lies adjacent to its existing Ebok and Okwok fields.

Afren’s strategy is to develop a series of marginal or fallow oilfields to build a sizeable production business in Nigeria – its business model is Addax Petroleum, which built a production base of more than 130,000 barrels per day and was acquired by Sinopec for over US$7 billion last year.  With this strategy, there are two factors critical to success: picking the right indigenous partners and picking projects in close proximity to help understand the geological setting and deliver...