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Nigeria: Africa Oil enters into amended agreement to increase its interest in deepwater Nigeria fields
03 Nov 2019
Africa Oil has entered into an amendment to the share purchase agreement signed on October 31st, 2018, between Petrobras International Braspetro BV ('PIBBV') and Petrovida Holding B.V. ('Petrovida'), the company formed by the consortium of Africa Oil, Delonex Energy and Vitol Investment Partnership II Ltd to acquire an ownership interest in Petrobras Oil and Gas B.V. ('POGBV'). This follows Vitol and Delonex decisions to withdraw from the previously announced purchase of 50% of the share capital of POGBV. Consequently, Africa Oil will be the sole acquirer of the 50% interest in POGBV with Vitol and Delonex exiting Petrovida.
The primary assets of POGBV are an indirect 8% interest in Oil Mining Lease ('OML') 127, which contains the producing Agbami Field, operated by affiliates of Chevron, and an indirect 16% interest in OML 130, operated by affiliates of TOTAL, which contains the producing Akpo and Egina fields.
It remains the intention of the Company to complete the transaction on the previously announced terms, subject to all necessary regulatory and third-party approvals, including the Department of Petroleum Resources ('DPR') in Nigeria.
Africa Oil has also announced that it has agreed the terms of a credit committee approved term sheet with BTG Pactual ('BTG') for a guarantee and loan facility ('Bridge Loan') of up to US$250 million. The Bridge Loan together with the available cash provide the necessary funds for the Company to cover its POGBV deal completion payments and 2020 budget.
Africa Oil President and CEO Keith Hill commented:
'Africa Oil considers this to be a unique and transformational opportunity to acquire an increased interest in world class producing assets operated by Chevron and TOTAL. We remain committed to completing this acquisition and look forward to working with Petrobras and all stakeholders to accomplish that goal.'
Source: Africa Oil