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SacOil sees oil output at Nigerian JV in 18 months

JOHANNESBURG (Reuters) – South Africa’s SacOil, betting on acquiring oil and gas production assets across Africa, expects to start producing oil at its Nigerian joint venture in 18 months, its head said on Tuesday.

SacOil said it had entered into a joint venture agreement with Nigeria’s Energy Equity Resource for an onshore Niger Delta oil asset, which has a potential peak production of 30,000 barrels of oil a day.

SacOil Chief Executive Robin Vela said the 50-50 joint venture is part of the company’s strategy to acquire producing and near-producing oil and gas fields in African countries such as Gabon, Equatorial Guinea and Tanzania as it shifts focus to production from exploration.

“Within 18 months we should start production (at the Nigerian joint venture) … we are talking about an income of $2.1 million a day in revenue if we go to peak production,” Vela said.

He said the company was also examining funding alternatives for the planned acquisitions, but he could not give figures.

“We are examining all the alternatives from a rights issue to offshore investments to an alternative listing. All these options are on the table,” Vela said.

SacOil shares were up 4.55 percent to 92 cents rand at 1236 GMT, outperforming a 0.2 percent rise in JSE’s All Share Index.

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