Afren could lose assets due to change of ownership clauses if it enters administration; Nigerian groups not interested in Nigerian and Kurdish assets
Afren could lose assets if the UK-listed oil company defaults on its loans and enters administration, according to analysts cited by a Financial Times report. The newspaper’s market report section quoted analysts at FirstEnergy who said it is understood that key Afren assets, such as the Okoro and Ebok prospects in Nigeria, are subject to change of ownership clauses.
As previously reported, Afren announced on Friday, 13 February that it had ended discussions with the Nigerian oil company Seplat regarding a takeover of the UK-listed company. Afren shareholders are more hopeful that the company can agree a restructuring with its creditors following yesterday’s announcement, the item said.
Separately, a report in The Times said Nigerian oil production companies are not thought to be looking to acquire Afren’s undeveloped assets in Iraq’s Kurdish region and East Africa. The newspaper did not cite a source for the claim. The article went on to cite City speculation that the lack of interest in those assets makes a break-up of the group more likely.
Afren’s share price closed 0.165p up at 7.275p in London on Friday, giving the company a market capitalisation of GBP 80.5m (EUR 108.7m).