With the crude price heading higher after its recent slump, oil shares are in the spotlight.
And not just for the benefits for their business. There is also a takeover offer to enliven the sector, with exploration and production group Afren, which has assets in Nigeria and Kurdistan, revealing a “highly preliminary” approach from Nigeria’s Seplat Petroleum Development Company. Seplat has until 19 January to make a firm offer.
News of the approach has pushed Afren’s shares 6.73p or nearly 15% higher to 54.55p.
Earlier this year Afren’s chief executive and three other directors left the company after an independent review into unauthorised payments.
Elsewhere in the sector, Royal Dutch Shell B shares are the biggest riser in the leading index, up 60.5p to £22.83, after Brent crude rose nearly 1% to just under $62 a barrel.
Tullow Oil is 10.3p better at 434.5p, and BP has added 7.7p to 420.7p.
Overall the FTSE 100 is up 66.50 points at 6611.77, in fairly thin pre-Christmas trading.
Among the other risers, Kingfisher has climbed 7.4p to 331.6p following news it had sold its 70% stake in lossing making B&Q China for £140m to Wumei Holdings.
Home Retail Group has risen 7.5p to 199.47p as RBC raised its rating from underperform to outperform and its target price from 175p to 230p.
