Page 16 - MEOG Week 10 2021

MEOG NEWS IN BRIEF MEOG

COMPANIES ADES’ major shareholder, ADES offer, from Dubai and London.
Investments, wholly owns Innovative. ENERGYVOICE
Tethys gives production Should the offer be approved, Saudi’s Public DNO reports KRG payments
Investment Fund (PIF) would provide the
update funds for Innovative to acquire the shares. DNO ASA, the Norwegian oil and gas
ADES Investments owns 63.9% of ADES,
Tethys Oil’s share of the production, before while Zamil Investments owns another 4.9%. operator, today reported receipt of USD
government take, from Blocks 3&4 onshore The latter has backed the sale. 42.4 million net to the Company from the
the Sultanate of Oman amounted in February The sale values ADES at $516 million, Kurdistan Regional Government (KRG), of
2021 to 328,209 barrels of oil, corresponding excluding treasury shares. The offer is a 40% which USD 31.9 million represents DNO’s
to 11,722 barrels of oil per day. premium to ADES’ closing price on March 5 entitlement share of January 2021 crude
Oil production in Oman is currently and a 35% premium on the last 12 months. oil deliveries to the export market from the
subject to production limitations under ADES listed on the main market of the Tawke license in Kurdistan.
the OPEC+ agreement. As a consequence, London Stock Exchange in 2017. It acquired Of the balance, USD 4.3 million is an
production from Blocks 3&4 is subject to 34 rigs and has a particular focus on Egypt, override payment equivalent to three percent
limitations but is likely to fluctuate on a although with some operations in Saudi and of gross January 2021 Tawke license revenues
monthly basis. Algeria. under the August 2017 receivables settlement
The Official Selling Price (OSP) for Oman The statement reported that the company agreement and USD 6.2 million is a payment
Export Blend Crude Oil for the month of had performed well, EBITDA for instance towards the Company’s arrears of USD 259.0
February 2021 amounts to USD 50.00 per increased from $80.3mn to $193.4mn from million relating to withheld payment of
barrel. The OSP, as published by Sultanate of 2017 to 2019. However, its share price has Tawke license 2019 and 2020 entitlement and
Oman’s Ministry of Energy and Minerals, is fallen by 25.5% over the period and trading override invoices.
the benchmark price for Tethys Oil’s monthly liquidity is low. Monthly entitlement and override
oil sales excluding trading and quality This does not justify the costs associated payments were withheld early last year by
adjustments. with public listing, it said, and there are KRG which was hit by lower oil revenues
Tethys Oil AB, through its wholly owned challenges around raising capital. and economic dislocations triggered by the
subsidiary Tethys Oil Block 3 & 4 Ltd, has a 30 Going private would allow a “longer term Covid-19 pandemic. After a four-month
per cent interest in Blocks 3&4. Partners are approach to strategy and decision making”, hiatus, entitlement payments were resumed in
Mitsui E&P Middle East B.V. with 20 per cent the statement said. The company would be March 2020 and override payments have now
and the operator CC Energy Development more flexible and grow in neglected areas of resumed with the January 2021 payment.
S.A.L. (Oman branch) holding the remaining the Middle Eastern market, for instance. The arrears payment is the first received
50 per cent. Within a year of the deal closing, ADES under a KRG plan that, as from January
TETHYS OIL would move its operational office to Saudi. 2021, if average Brent prices in any month
The country recently set out plans requiring exceed USD 50 per barrel, one-half of the
Saudi wealth fund to buy companies to have a local presence. incremental export revenue will be paid to the
Intro Investments Holding, which is
Tawke partners and shared prorata to their
ADES owned by Ayman Abbas’ family, has a 67% interests in the license.
DNO operates and has a 75 percent stake
stake in ADES Investments. Sky Investments
Innovative Energy has made an all-cash $12.5 Holding, owned by the Hussein family, has the in the Tawke license with partner Genel
per share offer to take ADES International remaining 33%. Energy plc holding the balance.
into Saudi Arabian hands. Ashurst advised ADES Investments on the DNO

P16 www. NEWSBASE .com Week 10 10•March•2021