Canadian Overseas Petroleum (LON:COPL) has unveiled a tie-up with African oil firm Shoreline Energy which is expected to see the new partners invest in new projects.
COPL and Shoreline will each own 50% of the new vehicle which will be called Shoreline CanOverseas Petroleum Development Corporation (or ShoreCan).
ShoreCan will build a portfolio of exploration and development assets in sub-Saharan Africa.
It has already secured assets in Tanzania and Namibia, and it is evaluating projects in Nigeria, Ghana and Mozambique.
“The acquisition of the initial assets in Tanzania and Namibia by ShoreCan is the first of a number of opportunities we are currently pursuing as we build a balanced portfolio,” said Arthur Millholland, COPL’s chief executive.
“ShoreCan does not envisage any requirement for material capital expenditure on these assets in the short term, with ShoreCan's primary focus being to add cash generative assets.”
Shoreline managing director Kola Karim, meanwhile, said: "I believe that the technical expertise of the COPL team will complement our own experience in Nigeria and we look forward to working with a management team motivated by the opportunity that exists in Sub-Saharan Africa for exploration, development and quality production.
“Our objective is to grow our oil and gas interests in the region beyond our current production base in Nigeria."
Shoreline is a partner in the OML 30 fields in Nigeria - where it was partnered with Heritage Oil, prior to last year’s takeover - but this project is not included in the ShoreCan venture.
COPL’s stake in the LB-13 asset in Liberia is also outside the joint venture.
Millholland today also highlighted the recent improvement to conditions in Liberia, following the Ebola outbreak, and he told investors that work to restart operations in the country is current at an early stage though international advisory notices remain in place on travel.