A Review of the Nigerian Energy Industry

Afren profit soars, driven by operations in Nigeria, others

22 August 2012, Sweetcrude, LONDON – AFRICA-focused explorer Afren saw its first half profit soar, resulting from higher output during the period.

The company was able to contend with lower crude oil and gas prices as well as high tax bills and soaring costs within the period
Net profit for the six months to the end of June was $100.2 million as against $20.7 million in the comparable period a year earlier.

The reason was a ballooning of revenues from $161 million to $771.7 million as production from the Ebok field off Nigeria was counted for the full six-month period. Production also began at the Barda Rash field in Iraqi Kurdistan to help Afren to a record revenue sum.

The cost of sales understandably soared from $81.9 million to $375.6 million while increased operations and revenues meant an increased tax bill of $215.9 million, up around tenfold.

Net production soared from 12,975 barrels of oil equivalent per day to 41,251 million barrels of oil equivalent per day.

The average realised price of crude oil achieved, however, sank 2.3% from $110.4 per barrel to $107.9 per barrel while average realised gas prices slumped 25% from $8 per million cubic feet to $6 per MMcf.

Chief executive Osman Shahenshah commented: “The Okoro East and Ebok North Fault Block discoveries in Nigeria and Simrit-2 discovery in the Kurdistan region of Iraq will add significantly to the already material proven and probable (2P) reserves base of 185 million barrels and 2P/contingent base of 995 MMboe.

“In East Africa, the on-going maturing of the portfolio has resulted in a mean prospective resources upgrade to 5838 MMboe (from 2113 MMboe).

Amongst other exploration plans, Afren is looking to drill two prospect wells at La Noumbi, Congo Brazzaville in the second half this year plus an exploration well on OPL 310 off Nigeria. In South Africa is expects exploration drilling on Block 2B to begin in 2014.

In this article

Join the Conversation

  • We congratulate Afren.

  • What do you think about Biafra? Some of us did not witness the Nigerian Biafran war/Nigerian civil war, 6 July 1967 – 15 January 1970, a political conflict caused by the attempted secession of the southeastern provinces of Nigeria as the self-proclaimed Republic of Biafra. The conflict was the result of economic, ethnic, cultural and religious tensions among the various peoples of Nigeria. But with the rise in religious killings in the Northern state, are we again on the verge of another civil war? Drop your comments below after the read…….

    A pro-Biafra group, Biafra Zionist Movement, BZM, announced, yesterday, that it had commenced the process to launch the struggle for a State of Biafra with the international community, saying that the formal declaration of the new Biafra Republic had been slated for November 5.

    This came as Conference of Igbo Youth Organizations, CIYO, warned that Ndigbo “would no longer watch in silence while our brothers and sisters are slaughtered like animals” in the Northern States.

    National President of BZM, Benjamin Onwuka, at a briefing said what prevented the realization of Biafra republic over the years was the inability to get the support of world powers, like the United States of America to back the project.

    “As we approach the end of 13 years since the mobilization and struggle for Biafran Independence began under the aegis of MASSOB and other groups, the people of Biafra have not made much effort in realizing our dreams because the struggle has been internalized since 1999,” Onwuka said.

    He expressed regrets that the international community did not know the aspirations of the Biafra people, saying “Biafra must therefore be internationalized because the forces preventing the dreams for our independence are vested in the United Kingdom.

    Biafra can only be achieved when we secure the support of the United States of America; the day USA comes to our side, that day we shall be free from Nigeria; the story of South Sudan where a bloody civil war was fought for over 24 years is a typical example.”

    Meanwhile, the Igbo youths in a statement endorsed by 10 youth leaders, including the National Coordinator, Igbo Youth Grand Alliance, Dr. Uchenna Uchehara, who read it after their emergency meeting in Owerri yesterday said: “Events of the past few months in Nigeria have become very disturbing to stakeholders, especially the Igbo nation that played a major role in the founding of Nigeria and inspite of the tragedies of the Biafran war, resolved to give total support to one united Nigeria”.

    They lamented that the ugly experience of Ndigbo in Nigeria had been the persistent and unprovoked killings of Igbo citizens out -BIAFRA MY HOME…PLEASE IS NOT A WAR THING ANYMORE BUT WE NEED YOUR SUPPORT AND CONTRIBUTION IN ANY WAY YOU CAN..GOD BLESS BIAFRA.

  • We work tirelessly to achieve this great feat in Ebok field only to get castigations, insults and zero commendations and benefits. Let dem appreciate those who achieve this and get more