Page 15 - AfrOil Week 12 2020

AfrOil
NEWS IN BRIEF
AfrOil
If the Resolution is not passed at the GM, the Deed of Variation will not come into effect. Con- sequently, the Acquisition will proceed under the original terms of the SPA announced to the market on December 27, 2019.
AAOG has informed Zenith that its largest shareholder, Forum Energy Services, has given an irrevocable undertaking to vote in favour of the Resolution at the GM in respect of its regis- tered holding in the ordinary shares of AAOG amounting in aggregate to 94,041,011 Ordinary Shares, representing 21.87%. of AAOG’s ordi- nary shares in issue on March 23, 2020.
Andrea Cattaneo, Chief Executive Officer, commented: “We are pleased to have success- fully renegotiated the terms of the Acquisition with the achievement of a 20% reduction and the avoidance of any Zenith equity issuance as part of the Consideration.
“Recent world events, specifically the COVID-19 pandemic, have severely impacted international financial markets, and, by conse- quence, also negatively affected the valuation of our share price. In view of the above devel- opments, we have decreased the Consideration to reflect an adjusted asset valuation commensu- rate with the decline in oil prices and to include cash only consideration which shall be funded by means of our publicly announced €25mn EMTN Programme.
“I look forward to updating the market in due course regarding Completion.”
Zenith Energy, March 24 2020
POLICY
São Tomé and Príncipe and Equatorial Guinea Lead Energy Cooperation in the Gulf of Guinea
São Tomé and Príncipe and Equatorial Guinea have agreed on the establishment of a Spe- cial Zone for Joint Exploration to explore and develop cross-border oil and gas reserves believed to be in the blocks bordering each coun- try’s maritime zone.
The decision was taken during a meeting this week in Malabo between Osvaldo Abreu, Min- ister of Public Works, Infrastructures, Natural Resources and Environment of São Tomé and Príncipe, and Gabriel Mbaga Obiang Lima, Min- ister of Mines and Hydrocarbons of Equatorial Guinea. It notably follows several cooperation agreements signed last year during the official visit of President Evaristo Carvalho to Equatorial Guinea, which notably included joint oil explo- ration in the countries’ maritime zone.
Both ministers discussed plans to expedite joint exploration efforts in the blocks within their maritime zone, and expect operations to start as early as October 2020. São Tomé and Príncipe is also set to benefit from Equatorial Guinea’s experience in the hydrocarbons sec- tor, especially when it comes to offshore oil & gas exploration, production and monetisation. In this regard, Equatorial Guinea has agreed to select students from São Tomé and Príncipe to study oil-related courses in the country.
São Tomé and Príncipe is believed to be an upcoming frontier when it comes to oil and gas. It has already attracted several international players in its blocks, including Galp Energia, operator of Block 6 and Kosmos Energy, oper- ator of Block 11. International major Shell also participates in both blocks with a 20% and 30% stakes respectively. At the beginning of the year, Galp announced that it would be drilling its first well in Block 6 by the end of this year following seismic surveys conducted since 2017.
In its ambition to open up a new petroleum frontier in African waters, São Tomé and Prínc- ipe hopes to rely on the expertise of its African neighbours. The country shares another joint area with Nigeria, Africa’s biggest oil producer, which resulted in the signing of a treaty in Feb- ruary 2001.
As we have seen in other parts of Africa, energy co-operation between neighbours on the continent can unlock tremendous value for Afri- can nations. Senegal and Mauritania for instance have signed an agreement of intergovernmental cooperation in 2018, paving the way for BP to take final investment decision on developing the cross-border Greater Tortue Ahmeyim gas field, located on the maritime border between both countries.
The Gulf of Guinea holds similar potential for
joint exploration and development between São Tomé and Príncipe and Equatorial Guinea, but also Cameroon and Nigeria. Hopes are high that the ongoing cooperation and dialogue between São Tomé and Príncipe and Equatorial Guinea will pave the way for additional joint develop- ment efforts in the region.
African Energy Chamber, March 18 2020
Energy law firm offers
support to businesses
affected by COVID-19
pandemic, oil market crisis
Recognising the toll that the COVID-19 Pan- demic has taken on the oil and gas industry, Cen- turion Law Group will assist small and mid-sized African businesses that are currently dealing with the economic impact of the coronavirus, which is hitting many African countries. With our strong African footprint, we believe it is an opportunity to give back to a continent that has given so much to us.
Our firm will offer assistance to local service companies in our countries of operation on contractual disputes, employment issues and compliance matters. We will also extend our support to multi-national entities at significantly discounted rates.
“While we believe that the industry will bounce back from this and come out even stronger and more united, we feel a great sense of duty at this time when the worst effects of the crisis are being felt on a daily basis,” stated Zion Adeoye, Managing Director of Centurion Law Group.
Centurion Law Group, March 24 2020
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