Page 10 - AfrOil Week 32 2021

AfrOil INVESTMENT AfrOil
Ghanaian press sources had reported previously that Accra had asked Parliament to authorise the borrowing of a larger sum – $1.65bn, made up of $1.3bn for the equity stakes and $350mn for contributions to the Pecan project. It was not immediately clear why the figure cited in the committee’s report was smaller.
The document did note, though, that the loan proposal had the potential to benefit Ghana’s oil and gas industry. The acquisition of the stakes will help GNPC develop the capacity to act as operator of major upstream development pro- jects and will also support the implementation of the Ghana Beyond Aid agenda, which calls for development of the country’s oil resources
in order to create new jobs and generate billions of dollars in budget revenues over the next 15 years, it stated.
Committee members also urged the govern- ment to submit loan agreements signed for the purpose of acquiring equity stakes in SWDT and DWT/CTP to Parliament for approval. This is in line with Article 181 of Ghana’s constitu- tion, they said in the report.
They also recommended that GNPC and EXPLORCO do the same for the agreement covering development of the Pecan field, in line with Article 268 of the constitution and Ghana’s 2016 Petroleum (Exploration and Production) Act. ™
Tower Resources, Beluga Energy sign HoA on Thali block offshore Cameroon
CAMEROON
TOWER Resources (UK) said earlier this week that it had signed a binding Heads of Agree- ment (HoA) with Beluga Energy (Nigeria) on a farm-out deal involving the Thali block offshore Cameroon.
In a statement, Tower explained that the document concerned the possible sale of a 49% stake in the Thali production-sharing contract (PSC) by its wholly-owned subsidiary Tower Resources Cameroon SA (TRCSA) to Beluga. The transaction would leave TRCSA with a 51% stake in the project and preserve its position as operator.
The HoA outlines the parties’ plan to adopt a joint operating agreement (JOA), subject to final documentation, the approval of Cameroon’s Ministry of Mines, Industry and Technological Development (MINMIDT) and the approval of Beluga’s shareholders for a financing contin- gency. It also provides for Beluga to contribute $15mn toward the cost of drilling the NJOM-3 well at the Thali block.
Tower said in its statement that TRCSA and Beluga had already submitted a copy of the pro- posed farm-out deal to MINMIDT for approval. The parties expect to receive a response soon, since Cameroon’s Petroleum Code requires the ministry to reply to such applications within 60 days, and hope to finalise the transaction by the end of September, it added.
Warebibo Soroh, Beluga’s CEO, said the proposed farm-out deal would benefit his com- pany. “We are pleased to be associated with Tower’s management team in the development of the Thali block in Cameroon,” he commented. “This investment fits perfectly with our strategy to invest in de-risked upstream assets and sup- ports the integration of our services from down- stream to upstream. Our technical team has
extensive experience in developing assets in the Gulf of Guinea and will collaborate with Tower in bringing the Thali block to first oil.”
Jeremy Asher, the chairman and CEO of Tower, also expressed satisfaction. “We are delighted to have the opportunity to work with Warebibo Soroh and his colleagues at Beluga and to fulfil our shared ambition to move this project forward to oil production in Cameroon,” he said. “Short-cycle oil and gas development projects such as this have excellent economics, which reflect their importance to Africa’s overall energy balance. The Njonji structure on which we are drilling the NJOM-3 well is one of several attractive structures on the Thali block, and we are looking forward to a great future developing these resources together.” ™
Beluga Energy will take a 49% stake in Thali (Image: Tower Resources)
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w w w . N E W S B A S E . c o m Week 32 11•August•2021