Heritage Oil acquires stake in Libyan firm

Heritage Oil has struck a deal to acquire a 51 per cent stake in the Libyan oil industry firm Sahara Oil Services.

The $19.5 million (£14 million) deal will allow Heritage to play a major role in Libya, the company claimed, while enabling it to look at ways to gain access to key producing fields and licences.

According to Tony Buckingham chief executive of Heritage Oil, the firm has a "long history" in Africa, as well as operations in Iraq, so is well placed to operate in an area where there is trouble.

"Heritage is well placed to play a significant role in the future oil and gas industry in Libya. This acquisition is consistent with Heritage's first mover strategy of entering regions with vast hydrocarbon wealth where we have a strategic advantage," he added.

Commenting on the move, Richard Griffiths at Evolution Securities told the Guardian that the newly-acquired company will help Heritage with the drilling of its "high risk, high reward" Area 7 licence off the coast of Malta.