LN Mittal-backed Ophir Energy to acquire Dominion Petro acquisition

Ophir Energy Plc, the Africa focused UK-listed oil explorer, backed by steel magnate Laxmi Mittal, is buying Dominion Petroleum Ltd. for £118 million ($186 million) in stock to expand in Kenya and Tanzania.

The acquisition will give Ophir the largest independent net deepwater acreage portfolio in the emerging and highly prospective hydrocarbon region of East Africa.

Since 2006, Dominion has assembled a portfolio of assets covering highly prospective acreage in Tanzania, Kenya, Uganda and the Democratic Republic of Congo. Its portfolio is in early exploration phase.

Dominion holds an 80 per cent interest in one block in Tanzania, a 60 per cent and 100 per cent interest in two blocks in Kenya, a 95 per cent interest in one block in Uganda and 46.75 per cent interest in the Democratic Republic of Congo. The total acreage of these blocks is 23,612 kms.

Dominion's portfolio has attracted considerable interest over the last year since Anadarko Petroleum has made large gas discoveries in offshore Mozambique, offshore gas discoveries in Tanzania by BG Group and Ophir, and discoveries in Uganda by Tullow Oil. 

Kenya is also seen as having significant potential, since its blocks were keenly contested during the recently held auction.