Heritage Oil to buy Nigerian oil assets for $850 million

Heritage Oil, a Jersey-based independent oil and gas exploration company with a focus on Africa, the Middle East and Russia, yesterday said that it will buy some Nigerian oilfield assets, known as OML 30, from global oil and gas giants Shell, Total and ENI in an $850 million deal.

Heritage Oil and Shoreline Natural Resources Limited, a special purpose private Nigerian company formed between a subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company Limited, will acquire a 45-per cent stake in a producing oil lease in OML 30.

Both companies will also acquire a 45-per cent stake in other assets, including a part of the Trans Forcados pipeline, under the joint operating agreement for OML 30.

The assets are being acquired from Shell, Total, and Eni, who each own 30 per cent, 10 per cent and 5 per cent in the acquisition assets, respectively. The remaining 55 per cent stake is held by the Nigerian National Petroleum Corporation.

OML 30, located onshore in the delta in Nigeria, includes eight producing fields and associated infrastructure, including a segment of the 850,000 bopd capacity Trans Forcados pipeline.

OML 30 has a current average gross production of c.35,000 bopd, which will increase Heritage's net production from 605barrels of oil daily (bopd) to c.11,350 bopd.