Africa-focused oil company Afren has announced strong interim results on the back of higher oil prices, and looks set to double production this year.
The London-based company recorded pre-tax profits for the six months to 30 June of $75.4 million (approximately €59.2 million).
Turnover during the period was 38.4 per cent higher than last year, at $214.8 million (approx. €168.8 million) on the back of the rise in oil prices. Production decreased during the period from 22,900 barrels of oil equivalent per day (boe/d) to 20,400 boe/d, reflecting the higher prices.
Afrenhas now said it will more than double production by 2011 as its flagship oilfield comes on stream in Nigeria at the end of this year.
The development of the offshore Ebok field will add 35,000 boe/d to the company’s existing production of 20,400 boe/d.
Commenting on the results, Osman Shahenshah, chief executive of Afren, said: “Afren has recorded strong financial results in the first half of 2010. The Ebok development is progressing with first phase drilling nearing completion and facilities upgrade at an advanced stage.
“We continued our inorganic portfolio expansion with the acquisition of OML 115 in Nigeria and have made a material strategic entry into East Africa with the proposed acquisition of Black Marlin, furthering our pan African ambitions.”
He concluded: “Our financial position is strong, underpinned by continued expected production and cashflow growth.”
Afren has assets in Ivory Coast, Ghana, Congo-Brazzaville and Sao Tome and Principe. As part of its strategy to expand into a pan-African company, it bought Canada’s Black Marlin for $101 million (approx. €79.4 million) in June. Black Marlin operates in Kenya, Ethiopia, the Seychelles and Madagascar, with 1.2 billion barrels of oil equivalent in net resources.
Last year, Afren established First Hydrocarbon Nigeria, a vehicle created to make acquisitions in the country, which is Africa’s largest oil producer. In March it announced it had agreed a $450 million credit facility with banks BNP Paribas, Crédit Agricole and Natixis in order to develop its Nigerian assets.
