Oil and gas producer Afren has completed a farm-out agreement with Lekoil for a 17.14 per cent participating interest in the OPL 310 licence located offshore Nigeria.
Under the terms of the farm-out, Afren will receive a total carry of up to $50m in respect of an exploration well currently being drilled at the Ogo prospect and a planned side-track well.
The indigenous Nigerian company Optimum Petroleum Development, the named operator on the block, will continue to hold a 60% participating interest, with Afren providing technical assistance to Optimum in respect of Optimum's obligations under a technical assistance agreement, the company said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Osman Shahenshah, Chief Executive Officer of Afren, said: "We are delighted to have successfully concluded a farm-out on OPL 310, offshore Nigeria and welcome Lekoil as a partner in exploring the significant potential of this under-explored region of the West African Transform Margin."
MF
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
