A Review of the Nigerian Energy Industry

Eni divests in two Nigerian blocks

31 December 2011, Sweetcrude, HOUSTON – Italian giant, Eni, is selling a large chunk in two offshore Nigerian blocks to a company related to US independent Camac Energy.

Houston-based Camac is also acquiring a trio of offshore licences in West Africa and revealed details of its purchase of private outfit Avana Petroleum in an all-shares deal.

Camac reported in a New York bourse announcement on Friday that it has been informed by Nigerian Agip Exploration, an Eni subsidiary, that it is divesting its entire 40% stake in licences 120 and 121 in which it is currently partnered by Camac.

The holding is going to Allied Energy, which itself is an affiliate of Camac’s largest shareholder, with closing of the transaction expected in the first quarter next year.

Allied is expected to ramp up exploration at the licences and is also planning to drill two additional wells on the Oyo field beginning from next year.

“These two wells are expected to significantly increase oil production over current levels,” Camac wrote.

On top of this, Camac revealed that it has reached a deal with two unidentified national oil companies to acquire three exploration licences in three blocks off West Africa. Camac did not identify the blocks but said it will be the operator with a majority stake.

The blocks are in the “highly prospective” West African Transform Margin where there have been recent discoveries in Ghana and Sierra Leone.

Signing of production sharing contract is expected in the first quarter of 2012.

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