Africa Oil completes farm down agreement with TotalEnergies, QatarEnergy
Africa Oil Corp. has announced the completion of Africa Oil SA’s (AOSAC) strategic farm down agreement with TotalEnergies and QatarEnergy for the Orange Basin Block 3B/4B, offshore South Africa.
Africa Oil will receive staged cash payments for a total cash payment of $10 million of which $3.3 million is now due, and the remaining balance in two successive payments conditional upon achievement of key operational and regulatory milestones.
Africa Oil will also receive a full carry of its 17 percent retained share of all JV costs, up to a cap, repayable to TotalEnergies and QatarEnergy from production in case of exploration success and development, which is expected to be adequate to fund the Company’s share of drilling for up to two wells on the license. The maximum transaction value of is $46.8 million.
AOSAC, a wholly-owned subsidiary of Africa Oil, has retained a direct 17 percent interest in Block 3B/4B and transferred the operatorship of the block to TotalEnergies. Under a separate agreement between Africa Oil, AOSAC, Eco Oil & Gas and its subsidiary Azinam, AOSAC will acquire an additional 1 percent in Block 3B/4B from Azinam subject to conditions and approvals from the government of South Africa.
