Afren Approached to Sell African Oil-Asset Stakes, CEO Says

Afren Plc (AFR), a U.K. oil and gas company in Africa, received approaches to sell stakes in its assets as energy explorers step up the search for resources.

“We’ve had a number of discussions about farming in to acreage, partnerships and joint ventures,” Chief Executive Officer Osman Shahenshah said today in an interview, refering to taking stakes. “We have high equity positions in most of our acreage, and that gives us a lot of options.”

Afren operates in Nigeria and Ivory Coast as well as East Africa, where it plans to drill exploration wells in Kenya, Ethiopia, Tanzania and Madagascar. Shahenshah in March forecast more oil companies would seek fields in the region following the first onshore crude discovery in Kenya.

The CEO said there are no plans to sell London-based Afren. It fell 1.8 percent to 137.1 pence by the close in the city.

The company, which also owns fields in the Kurdistan region of Iraq, today reported record third-quarter sales of $1.1 billion and said it’s on schedule to produce more than 40,000 barrels of oil equivalent a day this year. Afren will use its revenue to bring more resources to development, Shahenshah said.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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