OAO Lukoil has completed its deal to enter the Etinde production-sharing agreement offshore Cameroon in the Gulf of Guinea.
Lukoil took 30% interest, down from the previously reported 37.5%, from Bowleven PLC, which maintains 20%. Additionally, operator New Age (African Global Energy) Ltd. took 10% from Bowleven in the deal, down from the previously reported 12.5%, and now holds 30% in the project. Lukoil has already met all preliminary conditions of the acquisition agreement signed in June 2014 (OGJ Online, June 24, 2014).
Cameroon’s state-owned Societe Nationale des Hydrocarbures is the other partner with 20%.
In return, Bowleven receives $250 million, including $165 million in initial cash proceeds; an estimated $5 million cash to follow for working capital; up to $40 million (net) carry for two Etinde appraisal wells, including testing; $15 million cash to be received on completion of appraisal drilling; and $25 million cash contingent upon and to be received at Etinde development project FID.
"Planning for the appraisal drilling on the Intra Isongo is already under way with locations for the two wells nearing finalization," said Kevin Hart, Bowleven chief executive. "With a carry in place to cover our share of drilling and testing we are looking forward to appraising this exciting reservoir interval."
The Etinde PSA was signed in 2008. The license to develop the Etinde area, valid for 20 years, was issued in July 2014.