Africa Oil, BTG agree to Nigerian deepwater merger

June 25, 2024

Africa Oil and BTG Oil & Gas have agreed to combine their joint interests in Nigerian deepwater E&P company Prime.

Prime Oil & Gas Coöperatief U.A. (formerly Petrobras Oil & Gas B.V. ) is a joint venture between Africa Oil Corp. and BTG Pactual with activity focused on E&P of oil and gas in Africa. Prime says it has more than 100 staff stationed on the Egina project carrying out operations and maintenance work.

Offshore staff

VANCOUVER, Canada — Africa Oil and BTG Oil & Gas have agreed to combine their joint interests in Nigerian deepwater E&P company Prime.

Under the agreement, BTG Holding would be amalgamated with a newly created subsidiary of Africa Oil, with BTG Oil & Gas in exchange receiving newly issued shares in Africa Oil.

Prime, in which Africa Oil has a 50% equity interest, has producing assets in the deepwater Niger Delta Basin, operated by Chevron and TotalEnergies.

Its main assets of Prime are an indirect 8% share in the Chevron-operated PML 52, covering part of the Agbami Field, and an indirect 16% in PMLs 2, 3 and 4 and PPL 261, operated by TotalEnergies and containing the Akpo and Egina fields.

All the fields are more than 100 km offshore and produce light to medium sweet crude through FPSOs facilities. Akpo and Egina also export associated gas to the Nigerian LNG plant; Agbami’s associated gas is mostly reinjected.

While the two companies aim to complete the deal on or before third-quarter 2025, this remains conditional on approvals from Africa Oil shareholders and the Nigerian authorities.

06.25.2024