Norwegian oil firm, Aker ASA and The Resource Group TRG AS have sold their shares in Aker Energy to AFC Equity Investment Ltd, a company owned by Africa Finance Corporation (AFC).
Aker ASA holds 50.79 per cent of the shares in Aker Energy and TRG holds 49.21 per cent.
Per the transaction, AFC is now the 100 per cent owner of Aker Energy and a 50 per cent owner of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore the Republic of Ghana.
The block comprises discoveries of 450-550 million barrels of oil equivalents, including the Pecan field.
Africa Finance Corporation has previously invested USD200 million in senior secured bonds in the DWT/CTP block development and AFC’s CEO currently serves on the Aker Energy board.
A statement issued by Aker Energy said the management team of Aker Energy would remain unchanged despite the sale of their shares to AFC.
“Aker still believes in the resource potential of the DWT/CTP block in Ghana. AFC is already invested in this field development and is well-positioned to continue this development. In line with Aker’s capital allocation priorities, we have, thus, made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration. This way, we share the risk and reward of this future development,” said Øyvind Eriksen, President and CEO of Aker ASA.
“The sale to a reputable African institution such as the AFC, was considered to be the best way forward to ensure the development of the Pecan field, as well as the whole DWT/CTP block. We are, therefore, very pleased to have reached this agreement with AFC.”
The consideration for the share purchase by AFC is an earn-out model based on potential future sales and/or production proceeds from the Pecan project. Aker will, on an ongoing basis, assess the value of the potential earn-out consideration compared to its current book value, which forms part of Aker’s Net Asset Value reporting.
AFC is a pan-African multilateral development finance institution with a proven track record in providing pragmatic solutions to Africa’s infrastructure deficit, having assembled a USD10.5 billion portfolio of loans and other investments across six sectors, and accession to the Corporation by 40 member countries.
The Republic of Ghana became an AFC sovereign shareholder in 2018, having acceded to membership in 2011.
AFC has invested in several projects in Ghana across various real sectors over the last 15 years, both as equity and debt providers.
“AFC reaffirms its commitment to catalyzing economic growth and development in Africa. AFC will continue to ensure that Africa’s natural resources including its vast oil and gas reserves, are developed sustainably within the global framework on energy transition and the UN Sustainable Development Goals,” said Samaila Zubairu, President and CEO of AFC.
“The DWT/CTP Project, which aims to develop Ghana’s proven resources, has the potential to create jobs, increase government revenues and spur development in the country. Our continuing collaboration with Aker entities for technical support to the development will ensure that the PoD is submitted on time and in line with the framework agreed with the Government of Ghana. This is a positive step toward achieving the project’s goals and significantly contributing value to the Ghanaian economy.”
Source: https://energynewsafrica.com