02 January 2013, London – UK-based explorer Heritage Oil has said that Nigerian outfit Shoreline Power has agreed to acquire a 14.5% equity slice of the duo’s OML 30 venture, netting the UK explorer $100 million.
Heritage Oil chief executive Tony Buckingham said the onshore oil asset had proved a transformational one that netted the explorer both increased production and cash flow.
The company is exiting Iraqi Kurdistan after gaining the Nigerian asset, while it also holds producing assets in Russia and exploration stakes in Malta, Tanzania, Pakistan, Libya and the Democratic Republic of Congo.
London- and Toronto-listed Heritage Oil and Nigeria’s Shoreline Power acquired OML 30 from Shell, Total and Eni last year in an $850 million deal.
The deal came with an option for Shoreline Power to acquire an extra 30% of Heritage Oil’s stake in the joint venture at OML 30.
The prolific block produced 35,704 barrels of oil in November, 15,665 of which was net to Heritage Oil under the prior 55:45 ownership and which yielded the UK explorer an estimated $52 million.
The 1097-square kilometre delta region block includes eight producing fields with oil and gas in numerous stacked reservoirs.
The licence includes a 45% interest in a segment of the Trans Forcados pipeline.
Heritage Oil said it would use some of the proceeds from Monday’s sale to secure existing debt and for general corporate purposes.
Nigeria is Africa’s largest oil producer, although the country’s oil sector has been frequently dogged by crude theft, spills and the threat of militant attacks, as well as political wrangling over stalled legislative changes.
*Bill Lehane for Upstreamonline
