Africa Oil Expands Nigerian Presence with Prime Oil Acquisition, Eyes 35,000 BPD Production
Africa Oil Corporation is set to strengthen its presence in Nigeria’s energy sector as it finalises the acquisition of Prime Oil & Gas Coöperatief,
a deal that will double its production capacity to 35,000 barrels per day.
The Canadian oil firm will assume full ownership of Prime Oil next Tuesday, securing indirect stakes in deep-water Nigerian fields operated by TotalEnergies and Chevron. Africa Oil’s Chief Commercial Officer, Oliver Quinn, confirmed that the deal would reshape the company’s scale, doubling production, reserves, and enhancing liquidity.
“These are highly valuable barrels, with lifting costs under $10, ensuring strong margins as they typically sell at a premium to Brent,” Quinn stated.
To sustain production in its mid-life fields, Africa Oil and its partners have lined up an infill drilling campaign this year. Beyond Nigeria, the company has strategic interests in Equatorial Guinea and a significant stake in Namibia’s Orange Basin, positioning it for long-term growth in Africa’s energy landscape.
TotalEnergies, operator of Namibia’s Venus discovery, is expected to make a final investment decision by 2026, potentially transforming the country into an oil exporter by the decade’s end.
“Our strategy is to maximise cash flow throughout the decade while positioning for significant expansion once Namibia’s Venus comes onstream,” Quinn added.
Africa Oil’s expansion in Nigeria reinforces its foothold in the continent’s oil sector while also securing future growth through its investment in Namibia’s emerging petroleum industry.
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