Shenzhen: Africa-focused oil explorer Afren said it expects to make one to two acquisitions in the next 12 months, including one in Nigeria by year-end that could be worth up to $200 million (Dh735.6 million).
"We're looking to make further acquisitions, particularly in Nigeria," Afren Chief Executive Osman Shahenshah told Reuters in an interview yesterday in Shenzhen, where the company inaugurated a vessel used to process and store oil and gas.
"It's reasonable that we'll do one within this calendar year," he said.
The London-listed company is targeting development and production assets in areas where there are already oil reserves, and expects to generate more than $500 million in cash flow in 2011 for acquisitions, he added.
"We expect to generate quite a lot of cash next year, depending on the oil price," he said. "So we don't see funding as a problem for any of these acquisitions whatsoever." The fast-growing company, whose main producing assets are in Nigeria, has bought 15 assets in Congo, Gabon, Ghana and Ivory Coast.
Portfolio
Afren bought Canada's Black Marlin Energy Holdings for about $101 million in June to boost its exploration portfolio through the addition of 12 blocks in Ethiopia, Kenya, Madagascar and the Seychelles..
Once that deal is completed Afren would have 27 assets across nine countries.
Shahenshah said this year's acquisitions in Nigeria could be 1.5 to twice the Black Marlin deal's size, making the deal or deals worth up to $200 million.
Nigeria, Africa's biggest oil producer, is the country where Afren's most valuable assets are located. The group is now hoping to buy new assets as oil giants like Royal Dutch Shell and Exxon Mobil leave the market to cement its place as a major independent producer.
