Egbert Imomoh, Chairman of Afren, said, “Afren has established a strong track record of working with indigenous companies in Nigeria, in line with the Company’s strategy since inception. I am very proud to be leading the establishment of First Hydrocarbon Nigeria Limited, as a majority Nigerian owned oil and gas champion in the indigenous Nigerian E&P space. We strongly believe the indigenous E&P sector has the potential to become a major force within the Nigerian upstream arena and the establishment of FHN is a demonstration of our commitment to this objective.”

Afren says that First Hydrocarbon Nigeria Company Limited (FHN) has been established to be a majority Nigerian owned oil and gas company in the indigenous Nigerian Exploration & Production (E&P) sector.

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 leading Nigerian financial institutions: First City Monument Bank Plc (“FCMB") and Guaranty Trust Bank Plc (“GTBank”). Afren has demonstrated its long-term commitment to working in partnership with indigenous companies and empowering local management in Nigeria; Afren also has a strong track record of working with Nigerian contractors and financial institutions. FHN has been created to build on - and extend - this platform. It will be fully capitalised at the time of consummating new acquisitions.

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.

Tayo Adenirokun, Managing Director of GTBank, said, ”GTBank has lent strong support to Afren in Nigeria, since its participation in the debt facility to finance the Company’s flagship Okoro project in Nigeria. We are delighted to be alongside Afren, at the forefront in helping to fulfil the Government’s objective of growing the indigenous participation in the Nigerian upstream sector.”

Dr Jonathan Long, Chairman of FCMB, said, ”We welcome and support this initiative to create an indigenous Nigerian E&P champion. Afren has worked extensively with Nigerian communities, partners and contractors since inception, and we look forward to helping to encourage a wider Nigerian ownership of prized Nigerian oil and gas assets.”

Tags: Afren plc