Page 15 - AfrOil Week 12 2023

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
Egypt extends deadline

for oil and gas exploration
tender to June 1

Egypt’s Petroleum Ministry has extended the
deadline for submission of its most recent
international tender for oil and gas exploration
bid round to June 1. The ministry had initially
announced the tender for 12 blocks, split evenly
between onshore Nile Delta and offshore Med-
iterranean Sea in January with the deadline set
for April 30.
The Ministry of Petroleum had launched the
tender through Egyptian Natural Gas Hold-
ing Co. (EGAS) with the aim of attracting new
foreign companies to operate in Egypt on a units, 2) payment of VM commitments totaling Company has received only very limited cash
production-sharing basis. The Egyptian gov- $28.5mn, 3) $300,000 payment to VM, and 4) inflows and as a result continues to take steps to
ernment is intensifying efforts to exploit natural VM receives a $15mn short-term credit facility manage its overheads. These cashflows are con-
gas reserves in the wake of strong demand from for nine months, subject to the conclusion of the tributing towards the day to day running of the
Europe following Russia cutting off supplies to sale and purchase agreement (SPA). business but several creditors remain outstand-
the continent in retaliation for the imposition of Established in 1992, VM expanded its fleet to ing, predominantly related to the ongoing trans-
sanctions for Moscow’s invasion of Ukraine. include 13 construction vessels by 2012. Since actions with Midwestern and ELI, as described
This is the third tender to be put forward then, VM has emerged as a distinguished EPC more fully below. The Company is maintaining
through Egypt’s digital portal for exploration offshore contractor in the Arabian Gulf. In the a regular dialogue with these creditors and keep-
and production, which was launched in early last five years VM has successfully executed EPC ing them informed of the expected conclusion
2021. The portal Egypt Upstream Gateway gives projects in excess of $1bn for high-profile clients of the refinancing. The Company’s creditors are
quick access to basic information about tenders, such as Saudi Aramco and ONGC in India. not currently putting the Company under undue
concessions and technicalities, including co-or- bna/IntelliNews, 27 March 2023 pressure and the board of directors is confident
dinates of the offered open blocks, data room that all creditors will be settled following the
viewing, seismic surveys, subsurface insights San Leon Energy announces conclusion of the proposed refinancing refer-
and data packages. enced above.
In addition to the proposed refinancing,
bna/IntelliNews, 27 March 2023 update on refinancing and and as confirmed in the Company’s recent
Egypt’s Maridive to proposed transactions announcement on March 13, 2023, San Leon
continues to explore a potential sale of its non-
sell 60% of Valentine San Leon, the independent oil and gas produc- core investments in Decklar Petroleum Ltd,
tion, development and exploration company although the completion of that sale remains
Maritime’s Saudi unit focused on Nigeria, has announced a further subject to the purchaser finalising its own fund-
update in relation to: i) its current refinancing ing arrangements. With documentation sub-
to Al Gihaz discussions and ii) the proposed transactions stantially agreed, San Leon has been advised by
with Midwestern Oil & Gas Co. and the Com-
the purchaser that, once the purchaser’s funding
Maridive and Oil Services (MOS) has signed a pany’s further conditional investments in Energy is in place, completion will take place within a
conditional memorandum of understanding Link Infrastructure (Malta) Ltd (ELI). Details of matter of days. Nevertheless, the timing is out-
(MoU) with Saudi Arabia’s Al Gihaz Holding to the Proposed Transactions were announced by side of the Company’s control at present and fur-
buy 60% of the shares of a Saudi based subsidi- the Company on July 8, 2022. ther announcements will be made as and when
ary owned by Valentine Maritime (VM), which Update on the refinancing discussions: As appropriate.
itself is a fully-owned subsidiary of MOS, the announced by the Company on December 20, Update on the Proposed Transactions: The
company said in a bourse statement. VM pri- 2022, the Company was expecting to conclude Board continues to believe that the Proposed
marily specialises in engineering, procurement a refinancing with a preferred alternative fund- Transactions will be transformational for the
and construction (EPC) of offshore wellhead ing partner early in 2023. Discussions have Company and it continues to work towards
platforms, topsides, submarine pipelines, main- advanced since then, albeit much slower than their completion. However, the Board notes the
tenance and hook-up services. anticipated, both with this partner and also with recent challenge by NNPCL and OML 18 Energy
The terms of the deal stipulate that Al Gihaz a second potential lender. However, the Com- Resource Ltd of the operatorship of OML 18,
Holding gets the right to buy MOS’ 60% stake pany is now in final discussions and expects to details of which have been announced by the
in VM’s Saudi subsidiary and maritime units complete the refinancing in the near term. Fur- Company on March 7 and 13, 2023. In addition,
in exchange for 1) settlement of VM’s debt ther announcements will be made as and when the Board notes that Eroton is in the Nigerian
owed to a banking consortium incurred dur- appropriate. Law courts challenging the matter and expects
ing the purchase of the mentioned maritime Pending completion of the refinancing, the the case to be resolved shortly.

Week 13 30•March•2023 www. NEWSBASE .com P15