Execution of Investment and Shareholders Agreement for Aje Field, OML 113
Thursday 5 December 2019
Further to the announcement dated 21 October 2019, PetroNor E&P Limited is pleased to announce that it has now finalised and entered into the separate investment and shareholders agreement with the OML 113 operator, Yinka Folawiyo Petroleum. The purpose is to form a partnership with a jointly owned special purpose vechile (SPV) Aje Petroleum to help focus on the devlopment of OML and the Aje oil and gas field in offshore Nigeria.
The completion of the YFP Agreement is subject to authorisation of the Nigerian Department of Petroleum Resources and consent of the Minister of Petroleum Resources. The ownership of Aje Petroleum is to be shared between YFP and PetroNor on the basis of a 55% and 45% shareholding respectively
Jens Pace, Chief Executive Officer of PetroNor said: “This agreement is a key step in establishing a means to create partner alignment around our proposed concepts for the future development of the Aje Field. It builds on PetroNor’s successful business development track record of gaining access to opportunities by presenting commercial and technical solutions to asset owners in order to enhance value. In this case, it has led to the creation of a special purpose vehicle with majority local content that is focused on realising the value of OML 113. Following government approvals, the Company will advance plans for increasing liquids production, and developing the discovered gas resources.”
Knut Sovold, Chief Operating Officier of PetroNor and incoming Technical Manager for Aje Petroleum, said: “The fundamentals of the Aje Field are very encouraging. As part of our due diligence for the transaction our technical team has looked closely at various development plans to fully monitize the Aje Field. We are looking forward to working closely with our partners on the licence to review and approve these plans.”
Eyas Alhomouz, Chairman of Petronor and incoming board member of Aje Petroleum, said: “We are very happy working with YFP and their advisor Redcliff Energy Advisors in the joint effort to finalise this agreement. We look forward to aligning with rest of the licence partners and the government of Nigeria for the future development of the Aje Field.”