A Review of the Nigerian Energy Industry

Afren predicts record revenue

21 January 2013 – London-listed company Afren is expecting record financial results for 2012 as it revealed output during the year was in line with its previous guidance.

The company has forecast for sales revenue to total about $1.5 billion for the 12 months to 31 December, an increase of 151% compared to 2011, having achieved an average realised oil price of $107 per barrel.

The company’s forecast came as it said output during 2012 averaged 42,830 barrels of oil equivalent per day which it said was driven by year-on-year increase in net production from the Ebok and Okoro fields, off Nigeria.

Also providing a boost to production last year was the start-up of the Okoro field extension in October, as well as the start of production from the Barda Rash field in the Kurdistan region of Iraq.

“2012 saw record production and financial performance combined with significant exploration success in Nigeria and the Kurdistan region of Iraq,” said Afren chief executive, Osman Shahenshah.

“In 2013 we expect to further grow our reserves base through a multi-well exploration and appraisal drilling campaign in both established and new basins, while continuing to grow our production base.”

Capital expenditure for 2012 totaled roughly $520 million, of which about $315 was spent on production and development activities and $200 million on exploration and appraisal.

Afren said that it expected capital expenditure to total about $620 million for 2013, while it forecast net production this year to average between 40,000 and 47,000 boepd, excluding output from Barda Rash.

Afren’s full 2012 results are scheduled to be released on 25 March.

*Josh Lewis 


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