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Nigeria's Seplat on lookout for more targets - chairman

By Karin Strohecker

LONDON, Oct 21 (Reuters) - Seplat will continue its hunt for acquisition targets in Nigeria after losing out on Royal Dutch Shell (Xetra: R6C1.DE - news) 's latest divestments, but will not pay over the odds, the Nigerian oil and gas company's chairman and co-founder said on Tuesday.

Oil multi Shell (LSE: RDSB.L - news) , like many of its peers, is carrying out a major cost-cutting drive. It is moving away from Nigerian onshore oil production, blighted by massive theft, security issues and oil spills, and said on Tuesday it had sold assets in the country to a consortium led by Canadian oil and gas company Mart Resources (Other OTC: MAUXF - news) .

"We were unsuccessful - and the reason is simple we do not overpay for assets," A.B.C Orjiako told Reuters on the sidelines of an African investment conference in London.

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"There are still other opportunities for divestment, both with Shell and with other international companies, and we will continue to take part in this."

Seplat is in the process of looking at a number of other options in Africa's top oil producing nation and is in talks with 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's most populous nation, Orjiako acknowledged this would bring some uncertainty, though added he did not expect major security issues that could have an impact on Seplat.

"In any country, once you have an election year, there are anxieties - more so in a country like Nigeria," he said.

"There is stability in the Niger Delta, which is our primary area of operation. We have not seen anything bordering on the election that is going to mean instability in those areas."

The Niger Delta - home to 31 million inhabitants and most of Nigeria's biggest oil reserves - has been relatively quiet since an amnesty deal for former militants in 2009.

Most analysts expect the Niger Delta will remain peaceful as long as President Goodluck Jonathan, himself from the Delta, secures another term. However, former militant leader Mujahid Dokubo-Asari has repeatedly threatened to restart violence if Jonathan does not get another term.

Like other oil companies, Seplat is closely monitoring oil prices, which have fallen from $110 per barrel in June to less than $90 in recent weeks. Whilst the company was "not panicked", the recent drop had led to Seplat looking at options to fend off the impact of further price deterioration.

"Once we see prices tending towards $80 dollars, we will put hedging 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 of the year was going very well with Seplat already having touched on pumping 70,000 barrels of oil equivalent per day, and he was confident the company would keep its year-end target of exceeding that level.

(Editing by Alison Williams)