Page 17 - AfrOil Week 09 2021

AfrOil NEWS IN BRIEF AfrOil

“Gas is the lower-carbon feedstock for affordable future production proceeds from OPL 310.
electricity for Nigeria’s young and rapidly-grow- The Company believes that this further letter
ing population. Seplat is leading Nigeria’s transi- proposing to terminate the CRSA is not valid as
tion away from spending scarce foreign currency the relevant provisions of the CRSA have not
on imported, expensive, high-emission die- been adhered to by Optimum. The Company
sel-generated electricity and we believe this will will engage with Optimum to ensure that the
provide the necessary baseload for a functioning appropriate steps outlined in the Agreement are
electricity grid that will allow renewable energy followed, and is also seeking legal advice on the
to take its place, as we see in the developed world, matter.
which in large parts is still fuelled by coal. The Further updates to shareholders will be pro-
energy transition in Nigeria must balance both interpretation at Etame and lead to another suc- vided in due course.
the environmental and the social agenda.” cessful drilling campaign, starting late this year LEKOIL, February 24 2021
“Our flagship ANOH project, with the Nige- or early next year, funded from cash on hand and
rian Gas Company, is now fully funded and we cash from operations. Sustained operational and
have made excellent progress in difficult times, robust financial performance at Etame serves GAS
with major gas processing units expected to as the foundation for growing the Company
arrive in Nigeria in Q3-2021, installation to com- through future accretive acquisition opportu- Africa Oil & Power
mence before the end of the year, mechanical nities in line with our strategy and operational
completion and pre-commissioning in Q1-2022 expertise in West Africa.” publishes LNG report
and first gas flowing to customers before the end The transaction had an economic effective
of H1-2022, at a lower expected cost of up to date of July 1, 2020. Taking into account the With African natural gas consumption expected
$650mn.” $4.3mn deposit, net cash flow from the Sasol to grow at an average of 3.3% per year – to reach
Seplat Petroleum, March 01 2021 interest through closing and other purchase approximately 195bn cubic metres (bcm) in
price adjustments, VAALCO paid $29.6mn to 2025 and up to 380 bcm in 2050 – the down-
Sasol at closing from cash on hand. VAALCO’s loadable report identifies new and emerging gas
INVESTMENT reserves, production and financial results for the markets, provides insight into several large- and
Sasol interest being acquired will be included in small-scale projects across the continent and
VAALCO announces closing the Company’s results for periods after the clos- delineates key success factors of project financ-
ing date of the transaction.
ing and execution.
of the acquisition of gent payment of $5mn will be payable to Sasol sis of production and export potential through
In addition to rendering an in-depth analy-
Under the terms of the agreement, a contin-
additional interest in the by VAALCO if Brent oil pricing averages greater a global gas forecast, the report details the role
of LNG in advancing Africa’s energy transition;
than $60 per barrel for 90 consecutive days dur-
Etame field from Sasol ing the period from July 1, 2020 to June 30, 2022. facilitating local capacity building and knowl-
edge transfer; and meeting outstanding power
VAALCO Energy, February 26 2021
VAALCO Energy has now completed the pre- generation needs across the continent via gas-to-
viously announced acquisition of Sasol’s 27.8% LEKOIL provides update on power potential.
working interest in the Etame Marin block off- Aligned with the rise of LNG hotspots across
shore Gabon, increasing the Company’s total cost and revenue sharing the continent – in which Mozambique is set to
working interest to 58.8%. become a global gas exporter by 2023 – Africa Oil
Key Highlights: Nearly doubles VAALCO’s agreement for OPL 310 & Power will host a series of technical workshops
total net production and reserves; Expected featuring leading industry voices in Maputo on
to be immediately accretive to VAALCO, with LEKOIL, the oil and gas exploration and produc- March 9, 2021, which will be broadcast virtually
minimal additional variable costs; Anticipated tion company with a focus on Nigeria and West to local and global audiences. Mozambique has
to materially increase free cash flow in 2021 Africa, has announced that Mayfair Assets and garnered significant international attention due
and beyond, particularly in the current increas- Trusts, in which the Company has a 90% eco- to significant offshore gas discoveries, equating
ing price environment; Paid $29.6mn in cash nomic interest, has received a letter from Opti- to approximately 100 trillion cubic feet and cor-
to Sasol, taking into account the agreed upon mum Petroleum Development Company, the responding to large-scale LNG developments,
transaction price of $44mn, the deposit already Operator of the OPL 310 Licence, proposing to including Total’s Mozambique LNG and Exxon-
paid and post-effective date adjustments, with a terminate the Cost and Revenue Sharing Agree- Mobil’s Rovuma LNG.
future contingent payment of up to $5mn; and ment (CRSA) executed for OPL 310. From navigating local content policies,
Funded the closing of the acquisition entirely As announced on December 11, 2020, Opti- to pioneering innovation and technology, to
from cash on hand and cash from operations. mum conveyed its enforcement of the default executing deals on the continent, the techni-
Cary Bounds, Chief Executive Officer, com- clause within the CRSA. Pursuant to the CRSA, cal workshops aim to drive sustainable project
mented: “We are extremely pleased to close this the default clause stipulates that, following a cure development and showcase progressive energy
transformational and accretive transaction in period, if a default has occurred, Optimum and and business initiatives across Mozambique.
a rising price environment. All cash payments Mayfair shall jointly seek and agree on a buyer to The workshops will be held in conjunction with
were funded entirely by cash on hand. With the whom Mayfair’s 17.14% Participating Interest as a high-level Presidential Award Ceremony on
additional production from the acquisition, we well as the financial obligation within OPL 310 March 8, in which Mozambican President Filipe
are forecasting significant cash flow generation will be transferred. Mayfair will also be entitled Jacinto Nyusi will be awarded the distinguished
in 2021. In addition, we believe the recently to a full reimbursement of all amounts due to it, Person of the Year Award on behalf of AOP.
acquired 3D seismic will improve our subsurface as a result of past costs spent on the asset, from Africa Oil & Power, March 01 2020

Week 09 03•March•2021 www. NEWSBASE .com P17