Meren Energy is positioning its portfolio around low-cost oil and gas production, near-field exploration and longer-term development opportunities across West Africa, with management emphasising disciplined capital allocation and balance sheet strength.
Speaking at the Water Tower Research Virtual Insights Conference, Meren chief executive Oliver Quinn outlined the company’s approach to building a portfolio capable of generating cash through different stages of the oil price cycle. The strategy centres on assets with low costs of supply, strong reservoirs, efficient infrastructure and long production lives.
Nigeria remains a key part of the portfolio, with Meren holding producing assets alongside a pipeline of exploration opportunities close to existing infrastructure. Management highlighted the potential for smaller discoveries to be developed relatively quickly by connecting them to established facilities, reducing both capital requirements and development times.
One example is the planned Akpo Far East well in Nigeria. The prospect is located close to existing infrastructure and is being positioned as a relatively low-cost exploration opportunity with the potential to add new production if successful.
Meren is also maintaining exposure to higher-risk, higher-reward exploration. In South Africa, the company holds an interest in Block 3B/4B in the Orange Basin, where it is participating in a multi-billion-barrel exploration opportunity. Meren has reduced its financial exposure through a farm-down arrangement with TotalEnergies and QatarEnergy, while retaining an interest in the project.
Management said discussions around the project are progressing, with the company hoping for a final investment decision before the end of 2026. If development proceeds, first oil is expected towards the end of the decade. Meren’s existing arrangement means it would retain economic exposure without carrying development capital expenditure for the project.
The potential development adds another long-duration opportunity to Meren’s portfolio. Management expects the project to provide access to low-cost deepwater production with a potential production life of more than 20 years. Additional appraisal and exploration opportunities around the wider basin could provide further growth beyond the initial development.
The company’s capital allocation strategy is designed to balance these longer-term opportunities with near-term returns. Management said maintaining a strong balance sheet is the first priority, with a target of keeping net debt to EBITDA around one times through the cycle and maintaining approximately $150 million of liquidity.
Meren Energy Inc (MER.TO) is a leading independent, full-cycle E&P with production and development assets in deepwater Nigeria, a leading carried position in the Orange Basin across Namibia and South Africa, and operated licences in Equatorial Guinea.
