Page 14 - AfrOil Week 03 2020

AfrOil
NEWS IN BRIEF
AfrOil
BTG Pactual E&P BV will continue to own the remaining 50% of POGBV.
The total cash payment by AOI to close the acquisition, including the Nigerian govern- ment’s consent fee, amounts to $519.5mn. This includes a deferred payment of $24.8mn, which is due by end of June 2020.
The primary assets of POGBV are an indirect 8% interest in Oil Mining Lease 127 (OML 127) and an indirect 16% interest in OML 130. OML 127 is operated by affiliates of Chevron and con- tains the producing Agbami field. OML 130 is operated by affiliates of Total and contains the producing Akpo and Egina fields.
Aggregate gross field production from these assets averaged approximately 442,000 barrels per day (bpd) of oil for the period between Jan- uary 1 and December 29, 2019. Average daily entitlement production net to AOI’s 50% share- holding in POGBV for the same period was approximately 33,630 bpd.
This compares to an average net entitlement production of 22,460 bpd as of January 2019, with growth over the course of 2019 being mostly due to the production ramp-up on the Egina field, which came onstream in late Decem- ber 2018.
Africa Oil CEO Keith Hill commented: “We are very pleased to have acquired an interest in these established, low unit cost, producing assets with additional appraisal and develop- ment upside that are operated by some of the best companies in the industry. With the addi- tion of production and cash flow, Africa Oil is
transforming into a significant, Africa-focused independent E&P company. Combining these assets with our Kenya development project and exploration portfolio, we believe that Africa Oil has tremendous growth potential in a range of oil price scenarios.”
The three fields in these two licenses are all giant deepwater fields, located over 100 km off- shore Nigeria, and are some of the largest and highest quality in Africa. All three fields have high-quality reservoirs and produce light sweet crude oil.
Two of these fields, Agbami and Akpo, have been in production since 2009. The Total-oper- ated Egina FPSO started production in Decem- ber 2018 and ramped up to plateau production of approximately 200,000 bpd of oil during the first half of 2019.
In addition to the current producing reser- voirs, there are additional growth opportunities in undeveloped horizons within existing fields; adjacent undeveloped discoveries; and identi- fied exploration targets within the licenses that are under consideration for development and exploration drilling.
One advanced opportunity is the Preowei crude oil discovery, which is being considered as a satellite tie-back to the Egina FPSO. In the first half of 2019 the Field Development Plan for the Preowei field within OML 130 was approved by the Government of Nigeria. Preowei is not currently included in the Company’s reserves estimates.
Africa Oil, January 17 2020
AIIM invests in
Nigerian gas assets,
Accugas and Seven
Uquo Gas Ltd
African Infrastructure Investment Managers (AIIM) has acquired minority interests in gas assets in Nigeria majority-owned by Savannah Petroleum.
These comprise a 20% stake in Seven Uquo Gas Ltd, the entity that holds a 40% participating interest and a 100% gas economic interest in the Uquo gas field located in South-East Nigeria and a further 20% stake in Accugas, the integrated processing and distribution infrastructure for Uquo gas. AIIM purchased the interests from Savannah Petroleum, which owns the remaining 80% of each company.
AIIM, one of Africa’s largest and most expe- rienced infrastructure-focused private equity fund managers and a member of Old Mutual Alternative Investments (OMAI), invested $54mn of equity into the transaction through its flagship pan-African infrastructure fund, AIIF3.
Accugas has a 200mn cubic foot (5.7mn cubic metre) per day gas processing capacity plant and a pipeline network of over 250 km. The invest- ments will enable the company to continue to support critical power plants that generate more than 10% of Nigeria’s on-grid power supply as well as other leading industrial off-takers.
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Week 03 22•January•2020