Page 17 - AfrOil Week 13 2022

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
Qatar Energy buys 40%

stake in North Marakia
block offshore Egypt

State-owned Qatar Energy has bought a 40%
working interest from ExxonMobil (US) in the of $38.425mn net to Pharos (to be adjusted for transactions, GNA has reported.
North Marakia block in Egypt’s offshore Medi- working capital and interim period adjustments This was announced by Deputy Minister of
terranean Sea as part of a growing Qatari invest- from the effective economic date of July 1, 2020). Energy Andrew Egyapa Mercer on March 22,
ment interest in Egypt, media sources reported. In addition, the Group will be entitled to con- 2022, in Accra, as part of measures to contain
An affiliate of ExxonMobil would continue to tingent consideration depending on the average the depreciation of the Ghana cedi against the
operate the block with a remaining 60% interest. Brent Price each year from 2022 to the end of major trading currencies, which had contributed
The North Marakia Offshore block was awarded 2025, capped at a maximum total payment of significantly to the surge in fuel prices.
to ExxonMobil in 2020 covering 4,847 square $20mn. “That’s been worked on, and the expectation
km in water depths ranging between 1,000 and Pharos will continue to receive its retained is that we’ll get some conclusion in the coming
2,000 metres. 45% working interest share of all revenues, both week to enable them [petroleum importers] to
Qatar Energy and ExxonMobil have been cost oil and profit oil, throughout. do the needful at the pricing window,” Mercer
strategic partners for decades jointly develop- As announced on January 13, 2022, Jann was quoted as having said.
ing Qatar’s huge natural gas fields. They plan Brown assumed the role of CEO with effect from He added further, that creating a separate
to expand their co-operation into the Egyptian March 23, 2022, the date of receipt of the signed forex market for petroleum importers would
market. Deeds of Assignment from the Minister. Jann is cushion importers against current unfavourable
Qatar’s finance and foreign ministers met now one of two executive directors of Pharos, exchange rate challenges, the report noted.
Egyptian Prime Minister Moustfa Madbouli in alongside CFO Sue Rivett. On the same date, Ed He also believes that a component of the price
Cairo this week promising to invest $5bn. “We Story and Dr. Mike Watts resigned as directors of build-up is the downgrade of Ghana’s creditwor-
see that the horizon of the relations between Pharos, with Ed assuming a new role as President thiness by rating agencies like Fitch Ratings and
Qatar and Egypt is wide in boosting economic of the Group’s Vietnam business. Moody’s.
partnership and communication between the Jann Brown, CEO, commented: “I am Other measures that the government has
two countries on all levels,” the Qatari foreign delighted that we have now completed the farm- taken to curb the spike in petroleum prices are
minister said after the meeting. out transaction with IPR, a key step in reshaping the scrapping of some taxes, including the spe-
bna/IntelliNews, March 29 2022 both our portfolio and our financial position, cial petroleum tax, energy sector recovery levy
and one which sets Pharos on a path to a new and the sanitation and pollution ,levy which
Pharos Energy completes phase of growth in Egypt. IPR’s long track record would reduce the price by some GHS0.67.
The Ghana cedi has seen a significant drop of
of success in Egypt, the enhanced field econom-
farm-out transaction, ics agreed with the Egyptian General Petroleum 20% against the US dollar since the beginning
Corp. (EGPC) in January, plus the carry over our of the year after the Russian ruble, making it
transfer of operatorship of remaining 45% interest all combine to put us in the fastest in decades, according to Ghanaweb,
the right place to deliver the full potential from which cited a Nasdaq report.
Egyptian assets to IPR these assets. We look forward to working closely bna/IntelliNews, March 23 2022
with IPR, EGPC and our joint Operating Com-
Pharos Energy has been notified of the signa- pany (Petrosilah) to grow production, cash flow Eco Atlantic receives
ture by the Egyptian Minister of Petroleum and and the value of our Egyptian Assets.
Mineral Resources of the Deeds of Assignment “It is truly an exciting time to take over the TSXV approval for closing of
in relation to its Egyptian El Fayum and North reins at Pharos. I look forward to continuing to
Beni Suef Concessions. The Minister’s signature work with Ed to maximise the value from our acquisition of Azinam
of the Deeds of Assignment, which occurred on assets in Vietnam and would like to take this
March 21, 2022, was the remaining condition opportunity to thank Mike for his considera- Further to the Company’s announcement of
to completion of the farm-out and sale of a 55% ble dedication and contribution to Pharos over March 11, 2022, Eco (Atlantic) Oil & Gas has
working interest share and operatorship in each many years.” confirmed that it and Azinam Holdings have
of the Assets to IPR Lake Qarun Petroleum Co., a Pharos Energy, March 24 2022 now received final approval from the TSX Ven-
wholly owned subsidiary of IPR Energy. Accord- ture Exchange for Eco’s acquisition (through a
ingly, formal completion of the Transaction has Ghana creates forex market wholly-owned subsidiary) of Azinam Group.
now taken place. As disclosed in the Company’s announce-
As set out in the announcement of September for petroleum importers to ment of February 8, 2022, the Acquisition will
15, 2021, the firm consideration payable to the result in the issuance to Azinam Holdings of, in
Group at completion is $5mn, $2mn of which stabilise fuel price hikes aggregate, 40,170,474 Common Shares, provid-
was received as a deposit on signing of the farm- ing Azinam Holdings with 16.5% of Eco’s share
out agreements relating to the Assets. The Group The government of Ghana is set to create a capital as enlarged by such issue, providing for a
will also receive, going forward, a disproportion- special forex market to facilitate the acquisi- cashless acquisition to become the sole owner of
ate funding contribution from IPR Lake Qarun tion of US dollars by petroleum importers for Azinam’s entire African portfolio.

Week 13 30•March•2022 www. NEWSBASE .com P17