Page 16 - AfrOil Week 11 2020

AfrOil
NEWS IN BRIEF
AfrOil
Zenith is pleased to confirm that negotiations have now been extended to also include the possible acquisition of a second asset, operated by an international oil major, currently produc- ing 600 bpd of oil. The Company believes that the potential acquisition of the aforementioned assets represents a significant opportunity to materially increase Zenith’s near-term oil pro- duction and, in turn, achieve sizeable revenue generation upside.
Exclusivity Agreement for a working inter- est in an onshore oil production asset in Tunisia currently producing at a rate of approximately 700 bpd of oil, generating gross annual revenues of approximately US$15mn. Zenith is currently performing its due diligence process with the objective of finalising the transaction in due course. Completion of the Tunisian Acquisition will be subject to approval from the national oil company of Tunisia, Entreprise Tunisienne d’Ac- tivités Pétrolières (ETAP). Zenith is advanced negotiations with an international oil major to sign an off-take agreement for the asset’s future oil production in order to fund the Tunisian Acquisition.
Acquisition of Coro Energy’s Italian natural gas production and exploration portfolio. Com- pletion of the Italian Acquisition is conditional on the necessary regulatory approvals being obtained from the Italian Ministry for Economic Development. Upon completion, Zenith will become one of Italy’s leading natural gas produc- ers with an increase in Italian gross production revenue of approximately 410%, and an expected yearly gross revenue of approximately €3.6mn. It is therefore expected that, upon completion of the Italian Acquisition, Zenith will have a daily total cumulative production from its enlarged Italian portfolio of approximately 65,000 stand- ard cubic metres (approximately 382 barrels of oil equivalent per day).
Andrea Cattaneo, Chief Executive Officer, commented: “The recent steep decline in oil prices as a result of world events has particularly impacted financial markets, whilst also present- ing new opportunities to acquire highly pro- spective oil and natural gas production assets at advantageous terms.
“We are currently in the process of completing
a series of transformational acquisitions that, by virtue of their material existing production, or near-term highly prospective production poten- tial in the case of Tilapia, will enable Zenith to rapidly enlarge and diversify its portfolio at a time of great opportunity for companies with a clear strategic focus.”
Zenith Energy, March 12 2020
POLICY
NOC denounces illegal
fuel imports to eastern
region of Libya
In the last few days there has been an illegal shipment of aviation fuel into Libya. NOC has informed the UN, GNA and numerous other governments of these clear violations to UN res- olutions and Libyan laws.
This shipment of fuel into Benghazi port is a breach of the UN arms embargo relating to Libya, a contravention of the internation- ally agreed exclusivity of NOC relating to fuel
imports, an infraction of the vessel quarantine protocol, and contrary to international law. The shipment came from the UAE to Benghazi on a ship called Gulf Petroleum 4 and has been in Benghazi port for a number of days.
In September 2019, the UAE signed an inter- national statement saying: “We fully support Libya’s National Oil Corporation (NOC) as the country’s sole independent, legitimate and non- partisan oil company. Now is the time to consol- idate national economic institutions rather than break them apart. For the sake of Libya’s political and economic stability, and the well-being of all its citizens, we exclusively support the NOC and its crucial role on behalf of all Libyans.”
The actions of the UAE appear to be in stark contradiction to its words.
NOC Chairman Mustafa Sanalla said: “Despite extreme hardships caused by illegal blockades on Libya’s oil facilities, NOC has been able to supply sufficient fuel to all parts of Libya, including the Eastern regions to meet all civilian needs, including civil aviation. The only reason I can think of for additional fuel to be imported in this illegal and clandestine way is that it is intended for other purposes.”
National Oil Corp., March 15 2020
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Week 11 18•March•2020