Page 14 - AfrOil Week 12 2020

AfrOil
NEWS IN BRIEF
AfrOil
Tendrara Gas Sales Agreement (GSA) MoU: The Company confirms that GSA negotiations continue but announces that a binding GSA is not expected to be entered into prior to March 31, 2020. In order to extend the period for nego- tiations of the final GSA with Morocco’s Office National de l’Electricité et de l’Eau Potable (ONEE), the state power company of Morocco, beyond March 31, 2020, the Company expects to enter into a further extension to the previously entered GSA MOU shortly.
COVID-19 outbreak and safety measures: The safety of our employees, contractors and stakeholders is paramount and in line with rec- ommendations from both the UK and Moroccan Governments, the Company has implemented continuity plans enabling all personnel at the Company’s offices in Sevenoaks and Rabat to work remotely.
The Company also advises that the investor event which had been planned for the end of March or beginning of April will be postponed until further notice. Further announcements with respect to matters above will be made in due course, as appropriate.
Sound Energy, March 20 2020
SERVICES
Polarcus announces
cancellation of project in
West Africa
Polarcus refers to its announcement dated November 1, 2018, regarding the award of a 3D marine seismic acquisition project offshore West Africa.
The client has decided to cease operations on the project and the contract has been termi- nated. The client has accepted that compensation for early termination is payable in these cir- cumstances. Polarcus is engaged in discussions for alternative project opportunities, although the Company expects its vessel utilisation in Q2-2020 to be negatively impacted.
Polarcus, March 20 2020
Tullow sends Maersk
Drilling notice of contract
termination for Maersk
Venturer rig
Today, Maersk Drilling announces that it has received a notification from Tullow Ghana Ltd of early termination for convenience of the drill- ing contract for the drillship Maersk Venturer.
Since February 2018, Maersk Venturer has worked for Tullow offshore Ghana with an expected end of contract in February 2022. The rig is now expected to end the contract in June 2020. As a consequence of the termination, Maersk Drilling’s revenue contract backlog is reduced by $175mn covering the period from the end of the contract to February 2022.
Subject to commercial prospects, Maersk Drilling will take measures to reduce Maersk Venturer’s operating costs following the end of the contract.
Maersk Drilling maintains the profitability guidance for 2020 of EBITDA before special items of $325-375mn, as announced on March 20, 2020.
Maersk Drilling, March 24 2020
Equatorial Guinea grants
relief to oil and gas
service companies
The Ministry of Mines and Hydrocarbons (MMH) of the Republic of Equatorial Guinea decided on the waiving of its fees for services companies in the country. This is the first action to be taken to support oil and gas services com- panies in Equatorial Guinea in the wake of the oil price drop caused by the coronavirus pandemic.
“The Ministry of Mines and Hydrocarbons took the unanimous decision to waive its fees for services companies for a duration of three months,” declared Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons. “We rec- ognise that the oil sector continues to be the largest private-sector employer in the country and want to give our local service companies the means to weather the storm and avoid any jobs being lost. While it is important to let mar- ket forces determine the future, the government does have a role to play in stimulating the market and creating an environment for these compa- nies to stay strong, continue investing and create opportunities for our citizens,” he added.
Jobs security and the safety of Equatorial Guinea’s citizens have been put at the top of pri- orities for the MMH, which has further pledged to keep engaging with local and international companies to create the right kind of enabling environment for the sector to operate and grow despite current circumstances.
International operators will need to keep complying with local content requirements in Equatorial Guinea throughout the downturn and make sure to work with the local service industry to adapt to new market dynamics. This is the first such measure to be taken in Equatorial Guinea, which will consider additional action to bring relief to its oil and gas sector.
African Energy Chamber, March 23 2020
INVESTMENT
Zenith Energy renegotiates
acquisition of Tilapia
in Congo (Brazzaville)
Zenith Energy has entered into a conditional Deed of Variation to amend the terms of the consideration payable for the acquisition of an 80% interest in AAOG’s fully owned subsidiary, Anglo African Oil & Gas Congo (AAOG Congo) which has a 56% majority interest in, and is the operator of, the Tilapia oilfield in the Republic of the Congo.
Under the original terms of the Acquisition, Zenith was to pay a consideration of GBP1mn to AAOG, of which GBP500,000 was to be satisfied in cash to be paid in six equal monthly instal- ments with the first instalment due on com- pletion and the last being six months later, and GBP500,000 was to be satisfied by the issue of ordinary shares in the share capital of Zenith to be issued at the volume weighted average price of a Zenith common share for a period of 14 trad- ing days prior to completion.
The Deed of Variation provides that the Consideration shall be decreased by 20% to GBP800,000, to be paid in cash only and in 10 equal monthly instalments with the first pay- ment due on completion of the Acquisition. As a result of this amendment, Zenith will no longer issue any equity as part of the Consideration for the Acquisition.
The aforementioned revision to the amount of the Consideration and the mechanism by which it is to be settled is conditional only on the passing of a resolution to be put to shareholders of AAOG at a general meeting. Otherwise, the terms of the Acquisition, as detailed in Zenith’s announcement dated December 27, 2019, remain unchanged.
Completion of the Acquisition remains con- ditional on certain regulatory approvals being obtained in the Republic of the Congo, including consent of the Minister of Hydrocarbons, which Zenith is expecting to achieve in due course. Completion will therefore occur on the later of satisfaction of these regulatory requirements or completion of the GM
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Week 12 25•March•2020