PARIS (Thomson Financial) - Total announced that its operating subsidiary in Nigeria, Elf Petroleum Nigeria Limited (EPNL), has signed an agreement to acquire a 40 pct interest in offshore Oil Mining Lease (OML) 136, alongside local oil company Conoil Producing Limited which will hold the remaining 60 pct stake.
Total did not disclose any financial terms but stated that the agreement has been approved by the Nigerian authorities.
EPNL is to act as technical advisor, with Conoil remaining the operator of OML 136, Total said.
The French group explained that a total of 14 wells have already been drilled in OML 136, producing two large natural gas discoveries, Toju and Akarino.
Total did not give any production forecasts, stating that appraisal of Toju, possibly followed by Akarino, will determine the block's development potential.
The oil group said the acquisition of the stake in OML 136 is 'in line with an integrated strategy of developing upstream natural gas resources that can be monetized via downstream projects, in particular liquefied natural gas production projects.'
In Nigeria, Total is present in liquefied natural gas through its participations in Nigeria LNG (15 pct) and in the Brass LNG (17 pct) project, as well as Obite and Afam power generation projects. tfn.paris@thomson.com gt/slm COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.