A London-based firm has agreed to sell 100 per cent of its stakes in Aje oilfield, offshore Lagos, more than a year after a dispute among the joint venture partners was resolved.
Yinka Folawiyo Petroleum Company Limited, a wholly owned indigenous firm, is the operator of the Oil Mining Lease113, where the field is located. Other partners are Pan Petroleum Aje Limited (a subsidiary of Panoro Energy), New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, and PR Oil & Gas Nigeria Limited (the holder of MX Oil’s investment in the field).
Panoro Energy said it would sell its interest in OML113 to a Norway-based firm, PetroNor E&P Limited.
It said it had entered into a sale and purchase agreement with PetroNor to divest all outstanding shares in its fully owned subsidiaries Pan-Petroleum Services Holding BV and Pan-Petroleum Nigeria Holding BV.
The firm had said in December 2016, seven months after the field started producing, that it was in disagreement with its JV partners over cash call and intended to initiate arbitration and legal proceedings to protect its interests.
The Commercial Court division of the High Court in London in December 2016 granted the PPAL an interim injunction, temporarily restricting the JV partners from taking any action under the default provisions of the Joint Operating Agreement that would prevent the PPAL’s continued participation in JOA and the OML 113.
Panoro announced in its fourth quarter report 2017 published in February last year that the dispute had been fully resolved through an out-of-court settlement.
Panoro said its shares would be sold for an upfront consideration, consisting of the allotment and issue of new PetroNor shares with a fixed value of $10m plus a contingent consideration of up to $25m based on future gas production volumes.
According to the firm, the divested subsidiaries hold 100 per cent of the shares in Pan Petroleum Aje Limited, which participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502 per cent participating interest, with 16.255 per cent cost bearing interest.
“Following completion of the transaction, Panoro will have no presence in Nigeria,” it said.
The Chief Executive Officer, Panoro, John Hamilton, said, “We are extremely pleased to have reached this win-win agreement with PetroNor that perfectly suits both parties’ ambitions.
“We are very confident that PetroNor has the technical and financial capabilities along with the depth of expertise and vision to advance further the next ambitious development phases of Aje in a smooth and efficient aligned partnership with the operator, YFP.”
Another JV partner, ADM Energy (formerly MX Oil), in an emailed statement on Wednesday, described the entry of PetroNor into the Aje project as a strong endorsement of the viability of the asset and its significant potential upside.
“With its extensive offshore technical experience in oil and gas exploration, development and production, PetroNor can help bring near-term production growth and take Aje to the next stage of its development,” the Chief Executive Officer, ADM Energy, Osamede Okhomina, said.