Lekoil agreed to acquire Afren’s entire 22.86% participating interest in OPL 310 offshore Nigeria for a cash consideration of $13 million. The acreage contains the Ogo discovery.
Lekoil Nigeria Ltd. via its wholly owned subsidiary, Mayfair Assets and Trust Ltd. (Nigeria), holds a 17.14% participating interest and a 30% economic interest in OPL 310 obtained through a farm-in agreement signed in 2013 with Afren.
The OPL 310 acquisition will be undertaken by, Lekoil 310 Ltd., a wholly owned subsidiary of the company.
Following the acquisition, and prior to the drafting and formalization of the detailed documentation that follows the signing of the term-sheet with Optimum Petroleum Development Company, operator and local partner in OPL 310, Lekoil will hold a consolidated participating interest of 40% and an economic interest of 70% in OPL 310 and will become the technical and financial partner.
Commenting on the acquisition Lekoil’s CEO, Lekan Akinyanmi said: “We have long stated our ambition to become a leading indigenous, risk diversified E&P business focused on Africa in general and Nigeria in particular. We believe that today’s acquisition is a great result for our shareholders. It further demonstrates our ability to build a strong portfolio, and marks the culmination of a busy period in the development of the company. Lekoil now has a suite of assets at different stages of development, with different teams working on them.”