Oil Price Fall Is Making This South African Oil Giant To Consider Getting Out of Nigeria

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South Africa’s oil and gas explorer SacOil Holdings said on Monday it may cancel an agreement to complete an appraisal on a prospective oil asset in Nigeria and could exit other assets as the price of oil tumbles.

SacOil said in August it had acquired 20 percent in a prospective Nigerian oil licence, and later said in November it had completed research of the site.

SacOil said in a statement it would also make a decision on whether to continue exploration on similar assets in Malawi, Mozambique and the Democratic Republic of Congo as the price of oil dips to six-year-lows on oversupply concerns.

The company has previously said it would focus on more cash generative assets.

SacOil reported a 23 percent decline in profit after tax in the six months to August due to higher operating costs.

 

Reuters