First Hydrocarbon Nigeria (FHN) has completed the purchase of a 45 per cent stake in OML 26, onshore Nigeria, from Shell, Total and Eni
FHN, which is 45 per cent owned by London-listed Afren, signed an agreement worth $187.5mn last year to gain an interest in the block which hosts two producing fields and three undeveloped assets plus significant exploration upside.
FHN will partner with Nigerian Petroleum Development Company in the redevelopment of the block where output currently averages about 6000 barrels of oil per day from the Ogini and Isoko fields.
Afren said a phased work programme, which included a facilities upgrade, was planned to increase output to about 40,000 bpd within four years.
“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,” Afren chief executive Osman Shahenshah said.
The producing Ogini and Isoko fields on OML 26 have independently certified proven plus probable reserves and contingent resources of 184 million barrels of oil equivalent, while the undeveloped Aboh, Ovo and Ozoro fields have been estimated to hold a further 144 million barrels of gross contingent resources.