Africa Oil Enters Into Amended Agreement to Increase its Interest in Deepwater Nigeria Fields

Source Press Release
Company Africa Oil CorpDelonex Energy LimitedVitol 
Tags Corporate Deals, Deals, Upstream Activities
Date November 01, 2019

Africa Oil Corp. ("AOI", "Africa Oil" or "the Company") is pleased to announce that it has entered into an amendment to the share purchase agreement (the "Amended SPA") signed on October 31 st, 2018, between  Petrobras International Braspetro BV ("PIBBV") and Petrovida Holding B.V. ("Petrovida"), the company formed by the consortium of  Africa Oil, Delonex Energy Ltd. ("Delonex") and  Vitol Investment Partnership II Ltd. ("Vitol") 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. View PDF Version.

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 Corporation, and an indirect 16% interest in OML 130, operated by affiliates of TOTAL S.A., 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 is also pleased to announce 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."

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