Page 15 - AfrOil Week 16 2020

AfrOil
NEWS IN BRIEF
AfrOil
“I am also delighted to have initiated a fruitful relationship with KUFPEC, a highly respected subsidiary of Kuwait’s state oil company with operations across the world including Norway, and I look forward to exploring further cooper- ation opportunities in the future.”
Zenith Energy, April 20 2020
Sonatrach signs MoUs
enabling co-operation
with TPAO, Zarubezhneft
Algeria’s national oil company Sonatrach has signed two Memoranda of Understanding (MoUs) with the Russian company Zarubezh- neft and the Turkish company Turkiye Petrolleri Anonim Ortaklioi (TPAO), it announced in a statement.
“The two agreements will allow to initiate joint discussions on the opportunities concern- ing the exploration, development and exploita- tion of hydrocarbons in Algeria in particular following the promulgation of the new Algerian law on Hydrocarbons,” underlined the company.
These agreements will allow, in particular, “the revival of the exploration activity in part- nership and a fair sharing of risks in this capital activity,” it said.
Sonatrach, April 19 2020
Zenith Energy successfully renegotiates terms
for acquisition of stake
in Tilapia field
Zenith Energy, the listed international oil and gas production company focused on pursuing Afri- can development opportunities, has successfully renegotiated the terms for the acquisition from AIM listed Anglo African Oil & Gas (AAOG) of its fully owned subsidiary in the Republic of the Congo, 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.
The Company has entered into a new condi- tional Deed of Variation which now includes the acquisition of a 100% interest in AAOG Congo and related intercompany loans for a revised total consideration of GBP200,000.
The aforementioned variation to the terms of the Acquisition means that completion will occur after the passing of a resolution to be put to shareholders of AAOG at a general meeting. Completion of the Acquisition is therefore no longer conditional on certain regulatory approv- als being obtained in the Republic of the Congo.
Under the terms of the Deed of Variation for the Acquisition, payment of the Revised Con- sideration will solely depend upon the passing of the Resolution at the GM by AAOG share- holders. Payment of the Revised Consideration is expected to be made on the next business day following the date of the Resolution being passed. In addition, AAOG will novate 100% of the intercompany loans with AAOG Congo to Zenith as of the date of Completion, equivalent to approximately GBP12.5mn.
As previously announced, AAOG Congo is owed approximately $5.3mn by Société Nation- ale des Pétroles du Congo (SNPC) as a result of past work performed on the Licence.
Following Completion, the Company will assume responsibility of all ongoing costs and liabilities in relation to AAOG Congo. Zenith expects to implement a series of cost-cutting measures at AAOG Congo to improve profitabil- ity, especially in reaction to the significant recent decline in oil prices.
Andrea Cattaneo, Chief Executive Officer, commented: “Acquiring a 56% interest in the potentially transformational Tilapia oilfield, as well as 100% of the approximately $5.3mn in receivables, for a consideration of GBP200,000 is a fantastic result made possible by the excep- tional circumstances brought about by the COVID-19 pandemic, as well as the current low oil price environment.
“We are fully confident that the necessary regulatory approval process in the Republic of the Congo for the transfer of ownership, as well as negotiations for a 25-year renewal of the Tilapia licence, will conclude positively, having been delayed due to the difficulties caused by COVID-19.
“I believe we have obtained significant value for Zenith shareholders by concluding the transaction under the revised terms, and I look forward to delivering further good news in due course.”
Zenith Energy, April 17 2020
SERVICES
TGS commences Gambito
2020 3D seismic survey
offshore The Gambia
TGS, a leading provider of multi-client geosci- ence data for exploration & production (E&P) companies, has announced that it has fired the first shot in a 3D seismic survey it is undertaking offshore The Gambia.
Under the cooperation of The Gambian Min- istry of Petroleum & Energy (MOPE), the acqui- sition is being undertaken in conjunction with
BGP, utilising the BGP Prospector vessel. This vessel steamed south after recently completing another 3D seismic survey in northern Senegal, also on behalf of TGS.
The 4,770 square km Gambito 2020 3D sur- vey covers open acreage in deep and ultra-deep waters and looks to be highly prospective since extensive basin floor fans were identified in TGS 2D regional seismic grids. Located at the heart of the MSGBC basin, the survey will be adjacent to Jaan, a fully harmonised 30,000 square km 3D multi-client seismic project that recently deliv- ered final PSTM/PSDM products.
The acquisition in The Gambia will last around three months, with the full dataset availa- ble after final processing in Q2-2021. The survey will support a future licensing round organised by the country. TGS also has exclusive rights to existing multi-client seismic data offshore The Gambia.
Kristian Johansen, CEO at TGS, stated: “The commencement of the Gambito 2020 3D is the latest step to increase our extensive subsurface survey activities in the MSGBC basin, a prolific region in offshore West Africa. TGS’ unique combination of seismic and interpretation prod- ucts in the area will offer our customers critical insight into supporting their E&P plans in this region.”
TGS, April 17 2020
Yinson completes $800mn
refinancing deal for FPSO
John Agyekum Kufuor at
OCTP block offshore Ghana
Yinson has completed an $800mn refinancing exercise for FPSO John Agyekum Kufuor (JAK), with the loan successfully drawn down on April 14. The project kicked off five months ago in November 2019 when 13 local and international banks, seven of which are new to Yinson, signed the refinancing agreement. The tenure of the loan is 12 years.
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