International oil explorer with huge interest in Nigeria, Afren, has finally started selling its assets after hitting financial crisis that have seen its management and board of directors in disarray.
However, the asset sales appears to center or begin with East Africa where the company had made early entry after a highly successful asset hunting in Nigeria.
Octant Energy declared weekend that it entered into three agreements that will give it stakes in East Africa. The three agreements were signed with subsidiary companies of Afren and cover assets in Kenya and Tanzania. The assets include Block L17/ L18 and Block 1 in Kenya and the Tanga Block in Tanzania.
The acquisition is important in the development of these assets for the region as it ensures that a team with extensive regional knowledge progresses the respective PSCs forward and raises the profile of the region through the continued delivery of near term actionable items on these assets.
The Octant team is lead by Richard Schmitt, President & CEO, and Christopher McLean, Executive Chairman.
Both men have a long term history in the region with experiences going back to the initial acquisition and finance of the current discoveries in Kenya and select assets in Tanzania over the last seven to 10 years.
Schmitt commented, “I am encouraged to be working with assets I know well from my past experiences. This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further movement towards energy security and domestic growth in the countries. For me, being a part of East African growth and development again is a great opportunity and privilege.”
The acquisition of the PSCs by Octant remains conditional on customary approvals from the respective governments. Once approval is received Octant will complete the acquisition of the PSCs from Afren within seven days.
At this time Octant is evaluating its future capital requirements with respect to these PSCs‚ and will provide future updates with respect the proposed transaction in due course.