Afren Nigeria Unit Buys Stake In Delta Oil Fields From Majors

http://online.wsj.com/article/BT-CO-20101021-703231.html

Africa-focused oil and gas company Afren PLC (AFR.LN) Thursday said its Nigerian unit agreed to buy a stake in oil fields in Nigeria from Royal Dutch Shell PLC (RDSA.LN), Total SA (FP.FR) and Eni S.p.A. (ENI.MI).

First Hydrocarbon Nigeria Co. Ltd., in which Afren has a 45% stake, agreed to buy a 45% stake in OML 26 in the Delta State for $187.5 million, which includes the cost of the acquisition and First Hydrocarbon Nigeria's share of planned development.

OML 26 contains two producing fields and three undeveloped assets, Afren said.

The area contains recoverable reserves and contingent resources of 184 million barrels of oil and could contain another 615 million barrels of oil equivalent resources, Afren said.

OML 26 currently produces 5,000 barrels of oil a day but First Hydrocarbon Nigeria intends to raise production to 40,000 barrels a day over four years, Afren said.

First Hydrocarbon Nigeria agreed a $130 million credit facility with BNP Paribas to provide funding for the deal, Afren said.



-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com