Afren completes farm-out of stake in OPL licence

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.

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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