Operator of project involving Lukoil offshore Cameroon selling out
MOSCOW. June 7 (Interfax) - New Age (African Global Energy) Limited, operator of the Etinde gas project offshore Cameroon that involves Russia's Lukoil , has signed a definitive conditional agreement with a subsidiary of Perenco S.A. to transfer all of New Age's participating interests in the project.
Bowleven plc, one of the partners, said in a statement that it had received notification from the operator about the change of partner.
The transaction is subject to a number of approvals, including the customary regulatory approvals by the Cameroon government and the approval of the Etinde JV partners. Under the terms of the joint operating agreement, both Lukoil and Bowleven have a 30 day right of pre-emption over New Age's interest. Notwithstanding the Transaction, Bowleven will continue to be entitled to a final investment decision (FID) payment of $25 million from its Etinde JV partners which, following completion of the Transaction, would include Perenco.
"The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news. We believe that Perenco's proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure FID and the associated USD25m payment to Bowleven," said Eli Chahin, Chief Executive Officer of Bowleven plc.
Perenco, founded in 1975, is one of the leading independent oil and gas companies in Europe today. The company produces 270,000 boepd (net to Perenco). Perenco has ca. 6,700 employees, with onshore and offshore operations in 14 countries. Perenco has a significant presence in West Africa. In Cameroon it has operating areas in the Rio del Rey and Douala basins, with oil and gas production of ca. 100,000 boepd.
The project to develop the Etinde block in the Gulf of Guinea is being carried out based on a production sharing agreement signed on December 22, 2008. The participants in the project are Lukoil with 30%, New Age (African Global Energy) Ltd with 30%, UK-based Bowleven Plc with 20% and SNH with 20%. A 20-year license to develop Etinde was issued on July 29, 2014. Lukoil joined the project in 2014.