Africa

The Nigerian unit of Africa-focused oil and gas company Afren has agreed to buy a stake in oil fields in Nigeria from Royal Dutch Shell, Total and Eni.

First Hydrocarbon Nigeria (FHN), in which Afren has a 45 per cent stake, has agreed to buy a 45 per cent stake in OML 26 in the Delta State for $187.5 million (approximately €135 million). The price includes the cost of the acquisition and FHN's share of planned development.

The remaining 55 per cent stake will be held by the state-run Nigerian National Petroleum Corporation.

Mining giant Xstrata has said it will spend R4.9 billion (€510 million) to boost capacity of ferrochrome production and cut costs with a more energy-efficient smelter in South Africa.

Xstrata, one of the world's biggest producers of ferrochrome, has approved the second phase of expansion at its Lion ferrochrome complex, which is struggling to meet power needs.

Under the plans, a new smelter will be built with a capacity of 360,000 tonnes per year, boosting the group's overall ferrochrome capacity to over 2.3 million tonnes.

London-based Sirius Petroleum has entered a conditional agreement to purchase a 40 per cent participating interest in Nigeria’s Ke oil field and the surrounding Ke farmout area.

In order to fund the development of Ke, the company is preparing to place 313.9 million new shares, representing 30.73 per cent of the enlarged share capital to raise £15.67 million.

Kenya’s transport service poses many challenges to bus operators. Edwins Mukabanah, managing director of Kenya Bus Service Management Ltd tells Andrew Pelis how his company is making a real difference in Nairobi.

The challenge of running a successful bus service in Kenya is one fraught with difficulties and danger. But against the backdrop of failed enterprises, corruption and gangsters, one company has adopted a new approach—and is now making great headway in Nairobi.

Operating in a wide range of marketplaces, Flexicon Piping is well placed to play a role in infrastructure development as Africa takes its place on the world economic stage. Mike Enslin explains to Gay Sutton how the company has diversified during recession.

Nigeria has approved a $2.5 billion offer for its main fixed-line telecoms group Nitel, it has been announced.

However the government is insisting that the winning consortium come up with a $750 million down-payment to secure the sale.

The consortium will have 10 days to pay 30 per cent of its offer—or $750 million—from the date it receives an official demand for payment. It will then have 50 days to pay the balance.

Russian telecom giant Vimpelcom and Egypt’s Weather Investments have agreed to merge their assets, it has been announced.

The deal, worth $6.6 billion (£4.2 billion), will create the world’s fifth-largest mobile phone company, with combined subscriptions of more than 174 million. It will also give Vimpelcom, which has operations in many former Soviet republics, access to new markets in Africa and the Middle East.

The new company will operate in 20 countries in Europe, Asia and Africa.

Zambia is beginning to benefit as the world wakes up to the possibilities of green power—and power utility ZESCO is at the forefront of the changes.