Oil and gas company New Age the operator of the Etinde license offshore Cameroon has signed a definitive conditional agreement to transfer all of New Age's participating interests in the Etinde permit, and operatorship of the Etinde JV.
This is according to Bowleven, a partner in the license which contains the Etinde gas condensate field.
Bowleven, which said Monday it had been informed by New Age of the planned transfer of its stake to Perenco, said that the deal was subject to a number of approvals, including the customary regulatory approvals by the Cameroon government and the approval of the Etinde JV partners.
Under the terms of the joint operating agreement, both Lukoil and Bowleven have a 30-day right of pre-emption over New Age's interest.
"Notwithstanding the transaction, Bowleven will continue to be entitled to a final investment decision ('FID') payment of USD25m from its Etinde JV partners which, following completion of the transaction, would include Perenco," Bowleven said.
Eli Chahin, Chief Executive Officer of Bowleven plc, said: "The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news. We believe that Perenco's proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure FID and the associated USD25m payment to Bowleven. We look forward to engaging with Perenco and we will update shareholders in relation to Etinde developments in due course."
The Etinde Permit (former Block 7) lies in shallow water in the Rio del Rey Basin, offshore Cameroon, and comprises four proven reservoir intervals within the Pliocene and Miocene formations.
New Age is the operator and owns a 37.5% stake. Lukoil owns 37.5%, and Bowleven 25%.