Africa Oil Corp. has completed the previously announced farm-out with Maersk Olie og Gas A/S for Kenyan blocks 10BB, 13T and 10BA, Africa Oil said in a news release.
At completion, Africa Oil received US$427 million from Maersk. This amount represents $344 million of reimbursed past costs incurred by Africa Oil prior to the agreed March 31, 2015, effective date of the farmout and $83 million representing Maersk’s share of costs incurred between the effective date and Dec. 31, 2015, including a carry reimbursement of $15 million of exploration expenditures, the release said.
An additional $75 million development carry may be available to Africa Oil upon confirmation of existing resources, which is expected to take place in first-quarter 2016, the company said in the release. Upon reaching a final investment decision, Maersk will be obligated to carry Africa Oil for an additional amount of up to $405 million depending on meeting certain thresholds of resource growth and timing of first oil.
Africa Oil now holds 25% interests in Kenyan blocks 10BB, 13T and 10BA. Maersk holds a 25% interest in each of the blocks, and Tullow holds 50% interest in the blocks and serves as operator. For Kenya Block 12A, Africa Oil has a 20% interest; Tullow (operator), 65%; and Marathon, 15%. For Kenya Block 9, Africa Oil is the operator with 50% interest and Marathon holds the remaining 50%, according to the release.
The farm-out of 50% of Africa Oil’s interest in the Rift Basin and South Omo blocks remains subject to Ethiopian government approval, the release said. When the deal is complete, Africa Oil will hold a 25% interest and serve as operator of the Ethiopia Rift Basin Block, while Maersk will have 25% interest and Marathon, 50%. For the Ethiopia South Omo Block, Tullow will hold a 50% interest and serve as operator, while Marathon will hold 20% interest; Maersk, 15%; and Africa Oil, 15%, according to the release.
Recommended Reading
First US Utility-scale Offshore Wind Farm Starts Operations
2024-03-14 - The 12-turbine, 130-megawatt South Fork Wind project is a joint venture between Denmark's Orsted and New England-based electric utility Eversource.
Equinor, Ørsted/Eversource Land New York Offshore Wind Awards
2024-02-29 - RWE Renewables and National Grid’s Community Offshore Wind 2 project was waitlisted and may be considered for award and contract negotiations later, NYSERDA says.
Eversource to Sell Sunrise Wind Stake to Ørsted
2024-04-19 - Eversource Energy said it will provide service to Ørsted and remain contracted to lead the onshore construction of Sunrise following the closing of the transaction.
Dominion Energy Receives Final Approvals for 2.6-GW Offshore Wind Project
2024-01-30 - Dominion Energy’s Coastal Virginia Offshore Wind project will feature 176 turbines and three offshore substations on a nearly 113,000-acre lease area off Virginia Beach.
Ørsted Names New CFO, COO Following 2023 Setbacks
2024-02-27 - Ørsted appointed Trond Westlie as CFO and executive board member and Patrick Harnett as COO following company difficulties in 2023, including a $4 billion impairment charge in third-quarter 2023.