Total Mining and Oil Exploration, acquires 40 pct stake in new deep offshore concession in Nigeria

Total said it has agreed to acquire a 40 pct stake in the deep offshore OPL 257, a new exploration concession in Nigeria.

Total said the Nigerian government has approved the agreement, of which financial terms were not disclosed.

The French oil group will act as technical advisor in the development, alongside the operator Conoil Producing Limited, which will have a 50 pct stake.

Another Nigerian company will hold the remaining 10 pct of the licence.

In the initial exploration period that runs to 2011, the partners are to study 400 square kilometres of 3D seismic and drill two exploration wells.

In a second exploration period, which will be for a duration of five years, the development will cover a further 100 square kilometres of 3D seismic and the drilling of five exploration and/or appraisal wells.

No wells have been drilled so far in the concession, Total said.