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Aker Energy issues bonds to AFC
gHAnA
AKER Energy has secured nancing from Africa Finance Corp. (AFC), the Ghana-focused devel- oper said on July 8.
Aker Energy said it would issue $100mn to AFC and that the nancial institution was also likely to take part in future nancing. e com- pany’s CEo, Jan Arve Haugan, welcomed AFC’s support, predicting “collaboration in the years to come, as we embark on development projects o shore Ghana”. Money from the bond will go to developing Ghana’s Deepwater Tano Cape ree Points (DWT/CTP) block.
e bonds have a 5.5% coupon. ese would be converted into equity in Aker Energy should an initial public o ering (IPo) take place, at a discount of 1.85% per year to the o er price. e bonds will mature in ve years, although with an option to extend for another three years.
AFC also received equity warrants, on future o erings from Aker Energy, of up to $50-100mn. AFC’s president and CEo, Samaila zubairu, noted the Aker Group’s “outstanding track record of executing complex o shore projects like the DWT/CTP block in Ghana”.
Aker Energy completed its appraisal drill- ing work o Ghana at the end of April. At that point, the company said it was working on a
revised plan for development of the DWT/CTP block. once a nal investment decision (FID) is reached on the Pecan eld, the company has estimated rst oil could be achieved within 35 months. e rst phase would involve the pro- duction of 334mn barrels, while the wider area is thought to hold 600mn to 1bn barrels.
The Norwegian-backed company made strong progress initially but has slowed recently and some concerns have been expressed about its plans. A local think-tank, IMANI Africa, has complained that the company’s deal with Ghana could see the country lose $30bn. It also alleged that the head of Ghana National Petro- leum Corp. (GNPC), KK Sarpong, was linked to Fueltrade, which is partnered with Aker Energy on the DWT/CTP block. e o cial denied the claims, saying Fueltrade had begun working on the block in 2014, before he had been appointed to head GNPC.
Reports in the local press last week also cited a suit led on a 10% stake in the block that was to have been held by Ghana’s state-run Explorco. A report from Citinewsroom said GNPC’s approval of Aker Energy’s request to take the 10% stake was illegal, as it had come without approval from the Ministry of Energy.
ENH bides time on financing plans
mozAmbiquE
MozAMBIqUE’S state-owned Empresa Nacional de Hidrocarbonetos (ENH) has pushed back plans to line up nancing for the Mozambique lNG project, which reached nal investment decision (FID) in mid-June. ENH Rovuma Area Um has a 15% stake in the scheme. e company requires $2.3bn for its share of spending.
A report in Bloomberg this week quoted ENH’s CEo, omar Mitha, as saying it would “go back to the market to seek funding” later this year. is is intended to reduce risk and provide better terms, he said. Advising ENH is lion’s Head Global Partners.
A report from the lusa press agency quoted Mitha as saying the company intended to borrow from export credit agencies (ECAs) rather than commercial banks.
Mozambique’s nancial situation has su ered as a result of bad loans taken out in 2013-14. It was unable to service these debts and declared default.
e expectation is that once a deal has been reached to get its debts back on track, lenders will be more willing to engage with Maputo. Mozam- bique is in talks on some of its debts, while con- testing the legality of other agreements such as
the Proindicus sum.
A government representative was quoted
by the news report as saying it would provide a guarantee for ENH to raise funds.
Anadarko Petroleum, the US-listed company that is operating Mozambique lNG, noted that each partner was responsible for sourcing its own share of equity nancing.
Mozambique lNG will consist of two lNG trains, with 12.88mn tonnes per year of capacity. Gas for the plant will come from Area 1, which is o shore in the Rovuma Basin. Sales of 11.1mn tpy have been signed for the project, with o ak- ers in Asia and Europe.
is liquefaction plant will be based at the Afungi lNG Park, also home to the proposed Rovuma lNG. is second plant is anticipated to reach FID this year. ENH also has a 10% stake in Rovuma lNG.
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Week 28 16•July•2019
