FCMB, GTB to acquire $187.5 million SPDC oilfield

First Hydrocarbon, a Nigeria-registered company jointly owned by Afren, First City Monument Bank (FCMB) and Guaranty Trust Bank (GTB), to acquire a 45 per cent stake in Oil Mining Lease (OML) 26 in Delta State from the Shell Petroleum Development Company (SPDC) joint venture.

The value of the stake in the onshore field, where the Nigerian National Petroleum Corporation (NNPC) would hold the remaining 55 per cent, was put at $187.5 million.

Afren confirmed that the OML 26 field has recoverable reserves of 184 million barrels and could contain another 615 million barrels of oil equivalent resources. It said production would be increased from the current 5,000 barrels a day to 40,000 b/d by 2014.

It was reported that BNP Paribas had agreed to provide a $130 million credit line for the acquisition.