Sequa Petroleum N.V. and Partners Have Reached an Agreement to Acquire 10% of Block 15/06 in Angola from Sonangol P&P Through Sungara Energies Limited, a New African Entity
28 Abril 2022 - 4:00AM
Business Wire
Regulatory News:
Sequa Petroleum N.V. (“SPNV”) is pleased to announce that
Sungara Energies Limited (“Sungara”) has entered into an agreement
with Sonangol Pesquisa E Produção, S.A. (“Sonangol P&P”) to
purchase a 10% participating interest in Block 15/06, 40%
participating interest in Block 23 (with operatorship), and 35%
participating interest in Block 27 (the “Transaction”). Sungara is
jointly owned by three partners: the National Petroleum Corporation
of Namibia’s subsidiary NAMCOR Exploration and Production
(Proprietary) Limited (“Namcor”), Petrolog Energies Limited
(“Petrolog”, a company affiliated with African multinational
Petrolog Group), and SPNV’s subsidiary Sequa Petroleum UK Limited
(“Sequa”).
Sungara is a new entity with a focus on Sub-Saharan African
upstream oil and gas, combining world-class technical expertise
with local capability and commitment, able to operate and develop
oil and gas assets throughout the region in line with the highest
standards of integrity, quality, governance and responsibility.
Concurrent with the Transaction, NAMCOR, Petrolog and Sequa have
signed a shareholder agreement relating to their interests in
Sungara, with equal terms and shareholdings in Sungara for each
partner. A general meeting of shareholders of SPNV will be convened
to approve its entering into the Sungara partnership.
The Block 15/06 Joint Venture comprises Eni (operator, 36.84%),
Sonangol P&P (36.84%) and SSI Fifteen Limited (26.32%). Block
15/06 is one of the most prolific blocks in deepwater offshore
Angola with current oil production of more than 100,000 barrels per
day through two large floating production and storage facilities.
Following successful exploration and appraisal in the past several
years, an ongoing development programme is forecasted to increase
production in the medium term beyond 150,000 barrels per day. The
block has further upside potential which may materialise following
future exploration, appraisal and development activity.
Sungara’s 10% participating interest in Block 15/06 provides it
with current production of more than 10,000 barrels of oil per day,
forecasted to grow beyond 15,000 barrels per day in the medium
term, 75 million barrels reserves and resources, and further upside
potential. Offshore exploration Blocks 23 and 27 also provide
upside value. The consideration for the Transaction is ca. USD 500
million which includes a contingent payment of up to USD 50
million. The Transaction is planned to be funded by Sungara through
a combination of equity contributions from each of the Sungara
partners and third party debt. The economic effective date of the
Transaction is April 2022 and completion, subject to customary
conditions and approvals, is planned to occur in 2022.
Cautionary notice
This press release may contain information that qualifies as
inside information within the meaning of Article 7(1) of the EU
Market Abuse Regulation. This communication may contain
forward-looking statements. All statements other than statements of
historical facts may be forward-looking statements. Words such as
possibly and expected or other similar words or expressions are
typically used to identify forward-looking statements.
Forward-looking statements are subject to risks, uncertainties and
other factors that are difficult to predict and that may cause
actual results of SPNV to differ materially from future results
expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, risks relating to the
SPNV’s ability to engage a depositary and a listing agent, generate
positive cash flows, general economic conditions, turbulences in
the global credit markets and the economy, geopolitical events and
other factors discussed in SPNV’s public filings and other
disclosures. Forward-looking statements reflect the current views
of the SPNV’s management and assumptions based on information
currently available to SPNV’s management. Forward-looking
statements speak only as of the date they are made, and the SPNV
does not assume any obligation to update such statements, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220428005517/en/
Jacob Broekhuijsen Chief Executive Officer Sequa Petroleum N.V.
info@sequa-petroleum.com
Sequa Petroleum NV (EU:MLSEQ)
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