Market Report: Tullow Oil Approves Sale Of Assets To Panoro Energy
The weekly Market Report is provided by Gladius Commodities of Lagos, Nigeria. Download the full report here. Learn more about Gladius Commodities at www.gladiuscommodities.com.
Tullow Oil shareholders have approved the sale of its Equatorial Guinea assets to Panoro Energy. In February, Tullow agreed, subject to certain conditions, to sell its subsidiaries with assets in Equatorial Guinea and Gabon to Panoro for up to $180 million.
Tullow’s shareholders voted 99.98% in favor of the sale of Tullow Equatorial Guinea Limited (TEGL) to Panoro. TEGL holds a 14.25% non-operated working interest in Block G, which contains the Ceiba and Okume Complex assets offshore Equatorial Guinea. The resolution is the final condition for the completion of the agreement.
Panoro and Tullow will work on the final steps and expect completion in the coming weeks. Also, Panoro is continuing with the completion conditions related to its purchase of Tullow’s 10% working interest in the Dussafu Marin permit offshore Gabon, and will update shareholders in due course. Panoro will pay up to $105 million for the Equatorial Guinea transaction, up to $70 million for the Dussafu transaction and a further five-million-dollar consideration to be paid after both transactions have been completed.
Minister of State for Petroleum Resources H.E. Timipre Sylvia presented a memo to the Federal Executive Council (FEC) for the approval of the sum of $1.5 billion for the immediate rehabilitation of the Port Harcourt refinery, the largest refinery in the country. The Minister noted that the rehabilitation of the refinery will be done in three phases of 18, 24 and 44 months.
The first, 18-month phase will take the refinery to a production of 90% of its capacity. The project was awarded to Italy’s Tecnimont SPA. H.E. Minister Sylvia also noted that maintenance of the refinery, which is a recurring challenge for refineries across the country, was elaborately discussed by the FEC, and an independent professional organization will be employed to manage the refinery after it has been rehabilitated to ensure it operates at optimum capacity.
Click on the link below for full report