Page 12 - AfrOil Week 46 2019

AfrOil
NEWS IN BRIEF
AfrOil
TRAINING
3-TECH launches mobile
training solution to fuel
Africa’s economic growth
A new joint-venture company is launching a complete mobile training solution for the Afri- can energy sector to develop highly-skilled, local labour markets quickly. Together, 3T and Kentech will unveil mobile, modular training centres, which can be rapidly deployed in any remote or challenging environment.
Designed to help African states train locals quickly in industrial skills such as construc- tion, working at height, rigging and more, the centres come fully-fitted with internal training spaces tailored to the needs of local employers. As well as instructor-led training programmes, the centres will offer technology-driven training via simulators, virtual reality and e-learning in internationally accredited standards.
The modular construction means each cen- tre can be scaled up or down as required, and there are a wide range of optional hubs available to add onto the core offer including dedicated skills centres, accommodation pods and extra classrooms. 3-TECH will also have access to 3T Energy Group’s cutting-edge, connected soft- ware solutions, which manage workforce devel- opment and monitor and report on areas such as safety, compliance, competence and “on-the- job” performance in real-time on a global scale.
The new joint venture will be headed up by newly appointed Vice President Colin Crowley, who is well known in the global energy sector, having worked for the past 25 years in executive roles in the oil, gas, construction and mining industries across Africa and the Middle East.
Crowley said: “Africa’s energy sector offers huge potential employment opportunities within local communities but new projects are often in challenging and remote geographic areas making skills development difficult. 3-TECH has been set up to provide agile, sup- portive, high-quality, safe learning environments which can be quickly and easily dropped into geographical areas where it would be impossi- ble to build traditional training facilities. Within our mobile centres, local people will be able to gain invaluable, tailored skills for industry and employers will be able to source the skilled and competent workers they need.
“A complete mobile training solution can be designed and delivered quickly on site. This will help African people, regardless of how remote their location, develop vital skills now and in the future, at the same time as enabling companies to access skilled labour locally rather than looking further afield. We are hoping our new complete
training solution will have far-reaching social and economic consequences for good and help to boost African growth.”
3-TECH, November 11 2019
FINANCE
Financing update for the SNE field development
FAR Ltd has previously indicated that it has a broad range of financing options for the devel- opment of the SNE field under investigation. In anticipation, FAR has for some time been seeking the best debt financing solution for the company.
As previously advised, there are a range of possible financing methods available for con- sideration, but we have been most pleased with the responses from a range of Australian and international banks and have decided to pursue a conventional bank lending arrangement as the preferred option. As part of this process, FAR has appointed Macquarie Bank as an arranger of a debt facility to arrange and manage the syn- dication of the following facility: amount of up to US$350mn; seven-year term; all-in interest below 10% (margin + LIBOR, payable on drawn funds); commitment fee of 40% of margin (pay- able on undrawn funds); senior secured on FAR’s 13.67% interest in SNE, with the support of a parent company guarantee from FAR.
FAR is targeting binding and committed terms upon completion of each banks’ credit approval process on or before the end of 2019. While there is substantial progress on the financ- ing, no commitment to provide finance has been provided to date, and credit approval and underwriting from the banks has not yet been achieved and therefore it is not certain that a financing will proceed as outlined. FAR expects to make further announcements as this financ- ing progresses.
FAR Ltd, November 14 2019
Nigeria: Savannah
Petroleum completes Seven
Energy transaction
Savannah Petroleum, the British independent oil and gas company focused around activities in Niger and Nigeria, has announced the com- pletion of the Seven Energy Transaction. At a court hearing on November 13, administrators were appointed to Seven Energy International and yesterday effected the transfer of the Seven Assets to group companies controlled by Savan- nah and AIIM.
Following this step, final long-form docu- mentation with respect to the transaction was executed in accordance with the agreed steps as set out in the implementation agreement, and the transaction has now been completed.
Following completion of the transaction, Savannah now owns the Seven Assets, which comprise: an 80% interest in Seven Uquo Gas Ltd (SUGL), which in turn holds a 40% participating interest in the Uquo field located in South East Nigeria (with SUGL assuming responsibility for all operations of the gas project at the Uquo field following the occurrence of the Frontier Trans- action); a 51% interest in the Stubb Creek field located in South-East Nigeria (through 100% ownership of Universal Energy Resources Lim- ited); and an 80% interest in the Accugas mid- stream business, comprising the 200mn cubic feet (5.7mn cubic metres) per day Uquo gas pro- cessing facility, an approximately 260-km pipe- line network and long-term gas sales agreements with downstream customers.
One of Savannah’s partners in the transaction is African Infrastructure Investment Managers (AIIM) who, as part of the Transaction comple- tion, acquired 20% interests in SUGL and Accu- gas in return for cash consideration to Savannah, of US$54m which has now been received.
The transaction gives Savannah: a material producing asset base that is set to generate sig- nificant asset-level free cash flows, complement- ing the company’s prolific Niger exploration and development assets; exposure to significant upside potential, through both volume and margin uplift, via the utilisation of additional capacity within Accugas’ infrastructure; and a strong platform in the well-established and high potential Nigerian oil and gas industry.
Andrew Knott, CEO of Savannah Petroleum, said: “We are very pleased to have completed the Seven Energy transaction. The deal transforms Savannah into a full-cycle E&P company in West Africa and marks the start of a very exciting time for us. We have acquired a business with great people and a strong set of exploration, appraisal, development and production assets which are expected to be highly cash flow generative for the company.”
Steve Jenkins, chairman of Savannah Petro- leum, said: “Today marks a significant milestone in Savannah’s corporate history and elevates the company to being a leading oil and gas producer in the London market. We can now focus on further developing the high quality, world class assets that we have in our portfolio, which we believe this has the potential to deliver material long-term returns for our stakeholders. In Nige- ria, our focus is on delivering further growth in the company’s revenue base, and as we continue to develop in country we see strong potential for additional resource growth over time.” Savannah Petroleum, November 15 2019
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Week 46 20•November•2019