By Yemie Adeoye  with Agency Report
First Hydrocarbon Nigeria, FHN, in which Afren holds a 45 percent interest, said it has entered into Definitive Agreements with a number of International Oil Companies, IOCs.

These are Shell Petroleum Development Company of Nigeria Ltd, SPDC; Total E&P Nigeria Ltd, Total; and Nigeria Agip Oil Company, NAOC, otherwise called the “Assignors”, for the acquisition of Oil Mining Lease, OML 26, onshore Delta.

The acquisition includes two producing and three proven undeveloped assets with significant exploration as well as independently certified recoverable reserves and contingent resources of 184 million barrels, and additional exploration potential of 615 million barrels of oil equivalent gross unrisked prospective resources.

With a current combined gross production of approximately 5,000 bopd; a phased work programe, including facilities upgrade, the lease is expected to increase production to 40,000 bopd over the next four years.

FHN is also said to be on the verge of netting an investment of US$187.5 million for the oil block, which includes both the acquisition cost and FHN’s equity share of the phased development.