June 24 (Reuters) - Africa Oil ( AOIFF ) said on Monday

it had agreed to buy out BTG Pactual Oil & Gas's 50% holding in

their Prime Oil & Gas joint venture, in a deal that will see BTG

become a major shareholder in Africa Oil ( AOIFF ).

Prime has offshore producing assets in Nigeria and accounts

for 100% of Africa Oil's ( AOIFF ) reserves and production. The deal is

expected to be completed in the third quarter of 2025.

Shares in Toronto-listed Africa Oil ( AOIFF ) were up more than 6%

after the announcement.

On completion, BTG is expected to hold about 35% of Africa

Oil's ( AOIFF ) enlarged share capital and to nominate Huw Jenkins as

non-executive chair of the board and two other non-executive

directors, Africa Oil ( AOIFF ) said.

BTG, Brazil's largest independent investment bank, in turn

agreed to give Africa Oil ( AOIFF ) a "first look at potential equity

investments in upstream oil and gas assets and companies" in

Africa.

The agreement will "enhance our operations, deliver

identifiable savings, and increase our capital returns to

shareholders on a sustainable basis," said Africa Oil ( AOIFF ) President

and CEO Roger Tucker.

The Prime joint venture owns an 8% participating interest in

Chevron's ( CVX ) deep-water asset in the Agbami field and

another 16% interest in three offshore fields operated by

TotalEnergies.