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AfrOil NEWS IN BRIEF AfrOil

UPSTREAM aforementioned speculation is an attempt to cre- developments in high-pressure and high-tem-
ate misplaced uncertainty amongst shareholders perature applications,” says Peter Jansson, gen-
Zenith Energy reports on as to Zenith’s potential at this final stage in the eral manager of Subseatec.
assignation of a new 25-year licence for Tilapia.
Production is scheduled to start immediately.
plans for Tilapia II Licence Zenith is fully confident in its position in the Delivery will start in the fourth quarter of 2020
Republic of Congo and believes that its future and continue through the third quarter of 2021.
in Republic of Congo progress there will evidence the unsubstanti- “The contract is a confirmation of our engi-
ated, malicious nature of the rumours being neers’ leading expertise in advanced, forged
Zenith Energy, the listed international oil and circulated. products for the oil and gas industry. It also rep-
gas production company, is pleased to announce Andrea Cattaneo, Chief Executive Officer of resents a strong recognition of our continuous
that it has incorporated Zenith Energy Congo, a Zenith, commented: “We are looking forward product development within long forging steel
fully owned subsidiary of the Company, created with excitement to our journey in the Republic components with high tensile strength, for use in
under the laws of the Republic of the Congo. of the Congo following the possible acceptance risers for field developments in deep water,” says
Zenith Congo has been established at the of the Offer we have submitted. Furthermore, Jansson. “With the company’s origins in the steel
request of the Ministry of Hydrocarbons for the as announced on July 7, 2020, we are currently business, Subseatec has a unique understand-
purpose of receiving a new 25-year licence fol- working to submit a parallel offer in partnership ing of the properties and production methods
lowing the submission of a comprehensive com- with a local company for a second licence in the required for each material quality. The company
mercial and technical offer to the Ministry of vicinity of Tilapia. also has access to a strong and reliable supply
Hydrocarbons of the Republic of the Congo for “It is regrettable to observe damaging misin- chain for forging, machining, welding, coating,
the award of a new 25-year licence for the Tila- formation being disseminated online about the connections, testing and inspections.”
pia oilfield, to be named Tilapia II. For reference, Company. However, we are fully confident in our Scana, August 05 2020
submission of the Offer was first announced to position and the great potential of our near-term
the market on July 20, 2020. progress.”
The Company plans to operate Zenith Congo Zenith Energy, August 10 2020 INVESTMENT
in parallel to its other fully owned subsidiary in
the Republic of the Congo, Anglo African Oil & Zenith Energy reports on
Gas Congo (AAOG Congo), which, as publicly SERVICES
announced, has total receivables of approx- extension of LoI in Tunisia
imately $5.3mn from Société Nationale des Subseatec secures several
Pétroles du Congo (SNPC). Zenith Energy, the listed international oil and
As a result, and in agreement with the Min- subsea contracts in Africa, gas production company focused on pursuing
istry of Hydrocarbons, the Company has termi- African development opportunities, is pleased
nated the Plan for the Continuation of Activities Southeast Asia to announce that it has extended the duration
(PCA), first announced to the market on July 20, of the non-binding Letter of Intent (LoI) signed
2020, and returned operatorship of the Tilapia Norskeide Subseatec, a subsidiary of Scana ASA, with an Arab consortium of strategic institu-
licence from AAOG Congo to a subsidiary of was recently awarded a contract to supply subsea tional investors focused on African development
SNPC. equipment for field development in Africa and opportunities, to provide an investment of $2mn
It is planned that, in the event the Offer is Southeast Asia. Total contract value is approx- in Zenith’s share capital for a period of 90 days.
accepted by the Ministry of Hydrocarbons of imately SEK13mn (1.48mn), with an option for For reference, the LoI was first announced to the
the Republic of the Congo, the new operator of an additional SEK6mn ($680,000). market on March 31, 2020.
Tilapia II will be Zenith Congo. The company will take care of a total delivery The terms of the LoI remain unchanged.
Response to Media Speculation: The Com- of subsea equipment, engineering, procurement Under the terms of the LoI, the Strategic Invest-
pany has become aware of speculation surround- and documentation. ment is priced at GBP0.025 ($0.033) per Zenith
ing its activities in the Republic of the Congo. “The products are delivered in accordance common share (equivalent to approximately
It is the view of the Board of Directors that the with the industry’s strictest requirements for NOK0.30).
The Strategic Investment is conditional and
subject to a number of conditions, including the
successful completion of the publicly announced
Tunisian Acquisition (currently awaiting final
regulatory approval as publicly announced),
as well as the successful acquisition of two oil
production licenses currently being negotiated
with a national oil authority in West Africa (as
announced to the market on March 12, 2020).
In addition, the Strategic Investment is also
conditional on the appointment of a director
proposed by the investors to Zenith’s Board.
Upon completion of the aforementioned
acquisitions, it is anticipated that Zenith will
have an expected cumulative daily production in
excess of 1,500 barrels per day (bpd) of oil across
its asset portfolio.

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