Page 7 - AfrOil Week 14 2021

AfrOil INVESTMENT AfrOil

The improved cost recovery terms mean past or exploration interests in Egypt, Israel and
and future investments in El Fayum can be Vietnam.
recovered, thanks to a significant increase in In Egypt, Pharos holds a 100% working inter-
Pharos’ total share of gross revenues. Together, est in the El Fayum oil concession in the West-
these new fiscal terms mean an improvement of ern Desert. The concession produces from 10
up to $5.7 per barrel in Pharos’ breakeven price. fields and is located 80 km south-west of Cairo.
Pharos Energy is an independent oil and It is operated by Petrosilah, a 50:50 joint venture
gas exploration and production company with between Pharos and EGPC.
a focus on sustainable growth and returns to Pharos is also an operator with a 100% work-
stakeholders, headquartered in London and ing interest in the North Beni Suef concession,
listed on the London Stock Exchange (LSE). which is located immediately south of the El
Pharos has production, development and/ Fayum concession. ™

Lukoil rethinks Sangomar bid

SENEGAL RUSSIA’S Lukoil has abandoned its attempt to in the consortium. Indeed, FAR said in its state-
join RSSD, the joint venture set up to develop the ment that its board of directors still intended to
Sangomar block offshore Senegal, from buying sell this asset to Woodside on the same terms
out Australia’s FAR Ltd. proposed last November by ONGC Videsh
Its decision came to light last week, when Vankorneft, a subsidiary of India’s ONGC
FAR revealed that the Russian company had Videsh Ltd (OVL).
opted not to submit a binding takeover offer The two Australian firms formalised the
ahead of a shareholders meeting scheduled for deal with the signing of a sales and purchase
April 15. In a statement dated April 1, the com- agreement (SPA) on January 19. The SPA sets
pany said it had been “advised by Lukoil that the the price for FAR’s stake in RSSD at $45mn plus
Lukoil proposal is not proceeding to a legally reimbursement for FAR’s share of working cap-
binding offer.” ital in the project, including cash calls, between
Lukoil, Russia’s largest privately owned oil January 1, 2020 and the date the transaction is
operator, had offered earlier this year to pay concluded, along with the right to collect certain
AUD220mn ($168.43mn) for 100% of equity contingent payments in the future..
in FAR. However, its bid was non-binding, as As such, plans for the sale to Woodside are
well as conditional upon the latter company’s therefore likely to be approved at the April 15
retention of its stake in RSSD, which consists shareholders meeting. FAR has indicated that
of a 13.67% interest in Sangomar Offshore and it does not expect Remus Horizons, a private
a 15% interest in the other two sections of the investment fund, to update the AUD209.6mn
Sangomar block. ($160.5mn) takeover bid it submitted late last
The Russian company’s decision to drop this year.
plan clears the way for Australia’s Woodside However, it has also pledged to update share-
Energy, the operator of RSSD, to proceed with holders if it receives any alternative offers prior
its planned acquisition of FAR’s minority stake to the meeting.

The Sangomar block holds about 645mn barrels of oil equivalent (Image: FAR Ltd)

Week 14 07•April•2021 www. NEWSBASE .com P7