Anglo-French oil and gas company, Perenco, has signed a definitive deal with oil and gas exploration company, New Age, to buy its participating interests in the Etinde conventional gas development – located in shallow waters, offshore Cameroon. The agreement will transfer all participating interest in the permit, as well as operatorship of the Etinde joint venture for an undisclosed amount. With this agreement, Perenco’s relationship with Cameroon is expected to make significant headway while giving much-needed momentum to the long-stalled gas-condensate project, which has been slowed down in recent years.
Perenco, which operates several projects in Cameroon, Gabon, and the Republic of Congo, is well-positioned to take advantage of the enormous prospect presented by the field, as well as from surrounding fields, and is expected to move quickly towards the monetization of gas to be used domestically, regionally, and for export to transcontinental markets such as Europe, which has recently been in dire need of new, committed gas partners, giving new life to Africa’s ambitions to become a leading player in future the oil and gas economy.
The deal has been subjected to several customary regulatory approvals by the Cameroonian Government, as well as shareholders in the project including Bowleven and Russian multinational energy corporation Lukoil, which had previously been given a 30-day right of pre-emption, entitling the shareholders to a final investment decision (FID) payment worth $25 million. “The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news,” stated Bowleven CEO, Eli Chahin, adding, “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 $25 million payment to Bowleven. We look forward to engaging with Perenco and we will update shareholders about Etinde developments in due course.”
As a key operator in Cameroon, with its Kribi floating liquefied natural gas project serving as its prized asset in the country, Perenco already operates in the Rio del Rey and Douala Basins, with production in 2021 averaging approximately 100,000 barrels of oil equivalent per day. Situated in the shallow waters of the Rio del Rey Basin, offshore Cameroon, the Etinde Project is operated by New Age, with a 37.5% stake, Lukoil, also with a 37.5% stake, and Bowleven, which controls the remaining 25%.
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