Unfazed by the ongoing conflict in Libya, Heritage Oil Plc, an independent upstream exploration and production company acquired a majority stake in a oil company that will allow it to tap Libyan oil.

Heritage said in a statement that its wholly owned subsidiary has acquired a 51% interest in Sahara Oil Services Holdings Limited (SOSH) which holds the necessary long term permits and licences to provide oil field services in Libya for US$19.5 million.
Heritage is looking to play a significant role in the future development of the oil and gas industry in Libya.

Heritage Energy International Limited, a wholly owned subsidiary of Heritage Oil acquired control of SOSH, which owns the entire share capital of Sahara Oil Services Limited (SOS), a Libyan registered company providing services to the oil industry, for cash consideration of US$19.5 million.

"We are delighted to have acquired a controlling interest in an established oil field services company in Libya. We consider that Heritage, through SOS, is uniquely positioned to pursue field rehabilitation activities and be awarded exploration and production licences as we have operator status. This means Heritage is well placed to play a significant role in the future oil and gas industry in Libya," Heritage Oil CEO Anthony Buckingham said.

He said the acquisition is consistent with Heritage’s first mover strategy of entering regions with vast hydrocarbon wealth.

SOS was established in April 2009 and has been granted long-term licences to provide full oil field services in Libya, including the ability to drill onshore and offshore and hold both oil and gas licences. SOS is based in Benghazi with a large operational yard and equipment.

Heritage said it established a base in Benghazi during the last five months and has been in discussions with senior members of the National Transitional Council (NTC), the legitimate and recognised government of Libya, the Executive Committee which is the executive arm of the NTC and the National Oil Company and certain subsidiaries.

The company said dialogue with the said parties continues through SOS with Heritage exploring ways to assist the NTC and the state oil companies rehabilitate certain of their existing fields and recommence production.

It said the acquisition of SOSH will help diversify the current portfolio by gaining access to some large producing fields in Libya. In addition, Heritage plans to use SOS to assist with the drilling of its targets offshore Malta and is actively looking to contract a rig to bring forward the drilling of Area 7.

Heritage has an extensive data set of approximately 5,000 kilometres of 2D seismic, including data acquired in July 2011, which indicates the presence of multiple prospects and leads across Areas 2 and 7.

The company has exploration assets in the Kurdistan Region of Iraq , Malta, Tanzania, Mali and the Democratic Republic of Congo and a producing asset in Russia.