African independent explorer Bowleven is canceling a strategic alliance with energy services group Petrofac for development of a license area offshore Cameroon.
After signing the alliance with Petrofac in December 2012 for the Etinde permit area, Bowleven says it is terminating the deal by mutual agreement. Bowleven will pay Petrofac $9 million as part of the termination.
In June, Edinburgh-based Bowleven signed a farm-out agreement to sell its 50% operated equity in the Etinde permit to Lukoil and NewAge, and one of the conditions was to terminate the alliance with Petrofac.
Once the transaction with Lukoil and NewAge is finalized, Camop, a NewAge affiliate, is expected to become operator of the Etinde license which encompasses 2,316 sq km (894 sq miles), in three blocks MLHP-5, MLHP-6 and MLHP-7.
Under the 2012 agreement, Petrofac was to provide Bowleven with up to $500 million of funding for a first stage development of the permit area, with first oil targeted for 2016.
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