Afren Establishes New Company In Nigeria

Published: 03-Jul-2009

By: Staff Writer Staff Writer Staff Writer

Afren plc (Afren), an oil and gas exploration and production company, said that First Hydrocarbon Nigeria Company Limited (FHN) has been established to be a majority Nigerian owned oil and gas company in the Nigerian exploration and production (E&P) sector.

Strategic rationale

In direct response to the Nigerian government's objective to increase the level of local participation in the oil and gas sector and in line with the company's strategy, Afren has established FHN with the support of two Nigerian financial institutions: First City Monument Bank Plc (FCMB) and Guaranty Trust Bank Plc (GTBank).

FHN will fulfil the Nigerian government's criteria for indigenous operators, and will be used as a vehicle to acquire substantial oil and gas assets in Nigeria, including stakes in assets currently under negotiation, assets that may become available that are currently held by international independents and by the joint ventures between the Nigerian government and international oil companies, and assets that may be divested in connection with indigenous licensing rounds. FHN will also investigate opportunities to acquire the assets of other Nigerian indigenous companies, as appropriate.

Over time, FHN will be owned by a wider Nigerian stakeholder base, ensuring diversity of ownership and a reflection of Nigeria's national character. Subject to market conditions, it is the intention that FHN will seek a listing on the Nigerian Stock Exchange in due course. FHN has been assisted in this task by FCMB and GTBank as financial advisors in Nigeria and Morgan Stanley as international advisor, Deloitte LLP as tax and audit advisor, and White & Case LLP as international legal advisor.

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