By Karin Strohecker
LONDON, Oct 21 (Reuters) - Seplat will continueits hunt for acquisition targets in Nigeria after losing out onRoyal Dutch Shell's latest divestments, but will not pay overthe odds, the Nigerian oil and gas company's chairman andco-founder said on Tuesday.
Oil multi Shell, like many of its peers, iscarrying out a major cost-cutting drive. It is moving away fromNigerian onshore oil production, blighted by massive theft,security issues and oil spills, and said on Tuesday it had soldassets in the country to a consortium led by Canadian oil andgas company Mart Resources.
"We were unsuccessful - and the reason is simple we do notoverpay for assets," A.B.C Orjiako told Reuters on the sidelinesof an African investment conference in London.
"There are still other opportunities for divestment, bothwith Shell and with other international companies, and we willcontinue to take part in this."
Seplat is in the process of looking at a number of otheroptions in Africa's top oil producing nation and is in talkswith other parties, Orjiako said.
"I am confident we will make an announcement pretty soon."he said, declining to provide further details.
Asked about February's presidential election in Africa'smost populous nation, Orjiako acknowledged this would bring someuncertainty, though added he did not expect major securityissues that could have an impact on Seplat.
"In any country, once you have an election year, there areanxieties - more so in a country like Nigeria," he said.
"There is stability in the Niger Delta, which is our primaryarea of operation. We have not seen anything bordering on theelection that is going to mean instability in those areas."
The Niger Delta - home to 31 million inhabitants and most ofNigeria's biggest oil reserves - has been relatively quiet sincean amnesty deal for former militants in 2009.
Most analysts expect the Niger Delta will remain peaceful aslong as President Goodluck Jonathan, himself from the Delta,secures another term. However, former militant leader MujahidDokubo-Asari has repeatedly threatened to restart violence ifJonathan does not get another term.
Like other oil companies, Seplat is closely monitoring oilprices, which have fallen from $110 per barrel in June to lessthan $90 in recent weeks. Whilst the company was "not panicked",the recent drop had led to Seplat looking at options to fend offthe impact of further price deterioration.
"Once we see prices tending towards $80 dollars, we will puthedging options in place, and we are addressing that right now,"said Orjiako. "We are looking at our options."
Speaking about production, Orjiako said the second half ofthe year was going very well with Seplat already having touchedon pumping 70,000 barrels of oil equivalent per day, and he wasconfident the company would keep its year-end target ofexceeding that level.
(Editing by Alison Williams)
