Africa Oil has concluded its acquisition – worth $519.5 million – for a 50% ownership interest in Petrobras Oil and Gas BV (POGBV). BTG Pactual E&P will keep the remaining 50% of POGBV.
POGBV’s primary assets are an indirect 8% interest in oil mining lease (OML) 127, operated by Chevron, containing the Agbami Field, and 16% interest in OML 130, operated by Total and contains the Akpo and Egina Fields, offshore Nigeria.
The combined field production from these assets averaged 442,000 barrels of oil per day. The average daily entitlement production net to Africa Corp’s 50% stake in POGBV is approximately 33,630 barrels of oil per day.
“We are very pleased to have acquired an interest in these established, low unit cost, producing assets with additional appraisal and development upside, that are operated by some of the best companies in the industry. With the addition of production and cash flow, Africa Oil is transforming into a significant, Africa-focused independent E&P company. Combining these assets with our Kenya development project and exploration portfolio, we believe that Africa Oil has tremendous growth potential in a range of oil price scenarios,” said Africa Oil Corp’s CEO Keith Hill.
Africa Oil believes that there are further growth opportunities in undeveloped parts of the existing fields in Nigeria. The three fields under OML 127 and OML 130 are all massive deepwater fields, located over 100km offshore Nigeria, and are some of the largest and highest quality of crude oil in Africa.