Oil company Afren has signed Production Sharing Contracts for two licences in the gas rich Anambra Basin offshore Nigeria.

Afren through a Joint Venture (“JV”) with Global Energy Company Limited of Nigeria (“GEC”) a leading Nigerian based international oil and gas company active in oil and gas services across the Gulf of Guinea, has signed PSCs for OPLs 917 and OPL 907 and a signature bonus of US$1.6 million for each licence has been paid by the licence participants.

The licences are located in the Anambra Basin, the second most prospective basin in Nigeria, with estimated remaining gas resources in excess of 5 trillion cubic feet (“Tcf”) of gas, yet the basin remains largely unexplored with only 30 wells drilled to date leading to six discoveries.

The two licences cover an area totalling over 3,500 square kilometres. Both areas contain existing discoveries that require further appraisal and a number of additional leads and prospects have been identified.

OPL 907 contains the Akukwa gas and condensate discovery, with estimated in place volumes of up to 400 billion cubic feet (“Bcf”). OPL 917 contains the Igbariam gas and oil discovery, with estimated in place gas volumes up to 300 Bcf and oil in place up to 80 mmbbl.

The near term work programme includes additional data gathering and analysis on the existing discoveries. Additional high resolution 2D seismic data will be acquired over the existing discoveries later in 2008, prior to appraisal drilling in 2009.

The seismic will also evaluate the identified exploration leads and prospects.

The JV partnership, Afren Global Energy Resources (“AGER”), has taken a 41 percent interest in OPL 907 and a 42 percent interest in OPL 917, and will act as operator of both assets. The JV agreement between Afren and GEC defines the commercial terms under which Afren will participate with GEC in the exploration and development of the two licences. Afren has a combined 50% interest in the JV, with GEC holding the remaining 50 percent.

Tags: Afren plc