A wholly-owned subsidiary of Heritage Oil has entered into a joint venture (JV) agreement with Bayelsa Oil Company to create an indigenous Nigerian oil company
The new company, named Petrobay Energy Limited, will be based in Yenagoa, the state capital of Bayelsa. Heritage will own a 45 per cent equity interest in the JV, with the rest held by
Bayelsa Oil Company, who is itself owned by the BayelsaState government. The JV will look to acquire production, development and exploration assets from international oil companies.
Heritage said that through Petrobay it expected to become a significant contributor to "the future development of the oil and gas industry in Nigeria" and would seek to gain access to additional producing fields, both onshore and in shallow water, as well as other licence opportunities in Nigeria.
Governor of BayelsaState, Henry Seriake Dickson, said, "At a time when people are divesting oil assets in this area, no mention is made of our involvement. That era of standing by and non-participation has ended.
"What we have signed is going to blossom and move from strength to strength and be strong enough to compete favourably with other competitors in the upstream and downstream sectors of the industry. Let me announce to all those stakeholders in the industry that BayelsaState is ready for active participation in the oil and gas industry."
Heritage CEO Tony Buckingham added, "Petrobay will be uniquely positioned to acquire and develop hydrocarbon assets in the Niger Delta, where we can bring exploration and production expertise that, harnessed with the energy and aspirations of the people and state of Bayelsa, will generate value and benefits for all stakeholders.
"This alliance reinforces Heritage's commitment to a country with huge potential and the company is well placed to play a significant role in the future oil and gas industry in Nigeria."
Heritage took its first footsteps into the Nigerian market in November 2012 when it completed the acquisition of a major interest in OML 30 through its interest in Shoreline Natural Resources Limited, who acquired a 45 per cent interest in OML 30 for US$850mn.
