Page 6 - AfrOil Week 38 2021

AfrOil INVESTMENT AfrOil

Pharos Energy sells 55% stakes

in two Egyptian concessions

EGYPT UK-LISTED Pharos Energy is selling a 55% North Beni Suef, to IPR, a group [that] has
working interest in the El Fayoum and North extensive experience in Egypt. The farm-out,
Beni Suef fields in Egypt to IPR Lake Qarun while instantly boosting our balance sheet, will
Petroleum, a wholly owned subsidiary of IPR allow the entry of a partner who has commit-
Energy, for a total consideration of $115mn. ted to carry Pharos on a capital programme on
The deal implies a $5mn cash payment to these Egyptian assets, which will in turn lead to
Pharos Energy upon transaction completion, increased production, helping to fulfil the full
funding of retained interest share of the cost potential of the concessions.”
of future activities at the El Fayoum and North IPR has been active in Egypt for the last four
Beni Suef concessions for $38.4bn net and con- decades. It currently has equity stakes in eight
tingent consideration of up to $20mn, depend- onshore and offshore concessions and is serv-
ing on Brent oil prices each year between 2022 ing as operator of five of these. The company
and 2025. describes itself as a proven low-cost and techni-
The transaction, which is expected to be cally proficient operator. ™
completed in the first quarter of 2022, is antic-
ipated to strengthen the Pharos Group’s balance
sheet and enable a more comprehensive and
quicker development of the El Fayum conces-
sion, as well as testing of the low-risk North Beni
Suef concession at low cost to Pharos through
a sustained drilling programme, the company
said in a press release.
Jefferies Group, a US-based financial services
company, is acting as Pharos’ financial advisor
and sponsor for this transaction.
Ed Story, the CEO of Pharos, commented:
“I am extremely pleased to be able to announce
the farm-out of a 55% operated interest in each
of our Egyptian concessions, El Fayum and IPR Lake Qarun Petroleum now has 55% stakes in the fields (Image: Pharos Energy)

Another South African bank

vows to stop fossil fuel funding

SOUTH AFRICA SOUTH African banking giant FirstRand will Wednesday. It also predicted that the global
no longer fund fossil fuel projects. demand for the exports of fossil fuel would
FirstRand, Africa’s biggest bank by market decline.
value, announced last week that it was ending Around 90% of South Africa’s electricity is
the financing of new coal-fired power stations generated by coal presently, with nuclear com-
going forward. It also said it intended to end ing in second. If South Africa is to meet its inter-
the funding of fossil fuel-related activities in the national climate change obligations, it will have
next five years. to cut down on its fossil fuel reliance in the next
FirstRand believes that the decision will put it decade.
on a pathway to being totally carbon-neutral by Eskom, South Africa’s power utility, plans to
2050, as the South African economy also moves decommission five of its coal-fired power sta-
to generating green energy. tions to bring down its carbon footprint, and
“The pathway assumes the end of coal as invest in greener energy. However, it is strug-
the core energy source of SA between 2042 gling with crippling debt while trying to reform
and 2049,” it said in an updated document on its business. ™

P6 www. NEWSBASE .com Week 38 22•September•2021