Heritage Oil invests US$850 million in Nigerian oilfield assets

Heritage chief executive, Tony Buckingham. (Image source: Heritage Oil)Heritage chief executive, Tony Buckingham. (Image source: Heritage Oil)Heritage Oil has announced that its subsidiary, Shoreline Natural Resources, is to acquire a stake in Nigerian oilfield assets known as OML 30

The US$850 million deal will see the company acquire a 45 per cent participating interest in OML 30 from oil majors Shell, Total and ENI.

OML 30’s current gross production is 35,000 bpd, meaning that the deal will significantly increase Heritage’s net production from 605 bpd to around 11,350 bpd.

Shoreline Natural Resources, a company formed between Heritage and its Nigerian partner, Shoreline Power Company, will also acquire a 45 per cent stake in other assets as part of the agreement.

These assets include a segment of the 850,000 bpd capacity Trans Forcados pipeline.

OML 30 includes eight producing fields and has gross proved and probable reserves of 707 million barrels of oil and 2.5 trillion cubic feet gross reserves of gas.

“The acquisition of OML 30 is transformational for Heritage, providing a material change in production and reserves whilst pursuing our strategy of generating shareholder value,” said Heritage chief executive, Tony Buckingham.

“As part of Heritage’s diversified portfolio of exploration, appraisal and development assets, OML 30 is expected to provide significant production and cash flow, thereby de-risking Heritage’s financial profile, and our technical expertise will provide a comparative advantage in creating additional value.”

The remaining 55 per cent participating interest in OML 30 is held by the Nigerian National Petroleum Corporation (NNPC), whose subsidiary Nigerian Petroleum Development Company will take over as operator from Shell.

Heritage shares have been suspended until more detailed information about the deal is published.

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