SAPetro buys biggest share of Afren

LAGOS, October 22, 2014 – On Monday, South Atlantic Petroleum (SAPetro) doubled its stake in UK-based exploration and production firm Afren to total almost 7.1 percent, stock exchange filings show.

SAPetro’s first acquired 3.14 percent in the scandal-hit company at the end of September after the latter’s share price plunged 26 percent at the end of July amidst allegations that its CEO and COO had received illegal payments in Nigeria. Both have since been dismissed for “gross misconduct” following an independently conducted internal review.

Both SAPetro and Afren hold core assets in Nigeria and have an Africa-centric upstream asset strategy. While the acquisition may simply be a bet on a rebounding stock price, some analysts suggest that SAPetro may further increase its stake in Afren.

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