{"id":4060,"date":"2015-11-09T08:14:49","date_gmt":"2015-11-09T08:14:49","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4060"},"modified":"2017-01-26T12:46:19","modified_gmt":"2017-01-26T12:46:19","slug":"africa-oil-completes-farm-out-of-kenya-ethiopian-licenses-to-maersk-oil","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-completes-farm-out-of-kenya-ethiopian-licenses-to-maersk-oil\/","title":{"rendered":"Africa Oil Completes farm-out of Kenya, Ethiopia Licenses with Maersk Oil"},"content":{"rendered":"

Africa Oil Corp.\u00a0has announced that it has entered into a definitive farmout agreement with\u00a0a Danish oil and gas company Maersk Oil & Gas A\/S, owned by the Maersk Group\u00a0(“Maersk”)\u00a0whereby Maersk will acquire 50% of Africa Oil’s interests in Blocks 10BB, 13T and 10BA in Kenya and the Rift Basin and South Omo Blocks in Ethiopia in consideration for reimbursement of a portion of Africa Oil’s past costs and a future carry on certain exploration and development costs.<\/p>\n

\"Africa<\/a><\/p>\n

Under the terms of the farm-out agreement, upon closing of the transaction Maersk will pay Africa Oil US$350 million as reimbursement for approximately 50% of past costs incurred by Africa Oil prior to the agreed March 31, 2015 effective date.<\/p>\n

Maersk will also reimburse Africa Oil for its acquired working interest share of costs incurred between the effective date and the closing date.<\/p>\n

Commencing on the effective date, Maersk will also carry up to US$75 million of the Company’s share of development expenditures upon confirmation of resources and US$15 million of the Company’s share of exploration expenditures.<\/p>\n

\u201cMaersk Oil is committed to pursuing profitable growth by focusing on expanding within our core geographies. In addition we are rebuilding the exploration business with new acreage positions and pre-development discoveries to balance the risk profile in our portfolio. This agreement with Africa Oil is an example of this,\u201d said Maersk Oil CEO Jakob Thomasen.<\/p>\n

\u201cAs part of the Maersk Group, we are in a position, where we can take advantage of opportunities arising in current market conditions. This investment adds to an already attractive non-operated onshore portfolio for Maersk Oil that includes our 25 year presence in Algeria. This is an important driver of long term value,\u201d Thomasen continued.<\/p>\n

In addition, upon Final Investment Decision (FID), Maersk will also carry up to US$405 million of Africa Oil’s working interest share of development expenditures for the Lokichar Development Project.<\/p>\n

The total carry amount will depend on the Lokichar Development Project meeting certain thresholds of resource growth, and the timing of first oil. Upon closing, the respective working interests in each of Africa Oil’s blocks will be:<\/p>\n\n\n\n\n\n\n\n\n\n
Kenya Block 10BB<\/td>\nAfrica Oil – 25%<\/td>\nMaersk – 25%<\/td>\nTullow – 50%*<\/td>\n<\/td>\n<\/tr>\n
Kenya Block 13T<\/td>\nAfrica Oil – 25%<\/td>\nMaersk – 25%<\/td>\nTullow – 50%*<\/td>\n<\/td>\n<\/tr>\n
Kenya Block 10BA<\/td>\nAfrica Oil – 25%<\/td>\nMaersk – 25%<\/td>\nTullow – 50%*<\/td>\n<\/td>\n<\/tr>\n
Ethiopia Rift Basin<\/td>\nAfrica Oil – 25%*<\/td>\nMaersk – 25%<\/td>\nMarathon – 50%<\/td>\n<\/td>\n<\/tr>\n
Ethiopia South Omo<\/td>\nAfrica Oil – 15%<\/td>\nMaersk – 15%<\/td>\nTullow – 50%*<\/td>\nMarathon – 20%<\/td>\n<\/tr>\n
Kenya Block 12A<\/td>\nAfrica Oil – 20%<\/td>\nTullow – 65%*<\/td>\nMarathon – 15%<\/td>\n<\/td>\n<\/tr>\n
Kenya Block 9<\/td>\nAfrica Oil – 50%*<\/td>\nMarathon – 50%<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Africa Oil CEO Keith Hill has termed the farm-out deal as timely saying it will strengthen the company\u2019s balance sheet.<\/p>\n

\u201cWe believe they bring significant technical, financial and infrastructure development capabilities at a critical time when the Lokichar Development and related pipeline projects are moving towards sanction. Their parent company’s standing as the world’s leading logistical and transportation company will provide benefits not only to the project but to the host countries as well. This transaction allows Africa Oil to keep a significant stake in the project with no additional equity financing expected prior to first oil. The resulting strength of Africa Oil’s balance sheet will allow it to consider additional growth opportunities in this highly attractive acquisition and divestiture market,” he said.<\/p>\n

The transaction is subject to host government and applicable regulatory approvals.<\/p>\n

J.P. Morgan Securities LLC is acting as exclusive financial advisor to Africa Oil Corp on this transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa Oil Corp.\u00a0has announced that it has entered into a definitive farmout agreement with\u00a0a Danish oil and gas company Maersk Oil & Gas A\/S, owned by the Maersk Group\u00a0(“Maersk”)\u00a0whereby Maersk … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":4061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[70,258,259,264,266,288,809,870,1252,3784,2159,2381],"class_list":["post-4060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-africa-oil","tag-block-10ba","tag-block-10bb","tag-block-12a","tag-block-13t","tag-block-9","tag-ethiopia","tag-farm-out","tag-kenya","tag-maersk-oil","tag-rift-basin","tag-south-omo-block","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/11\/maersk-oil-logo.png?fit=1024%2C569&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-13u","jetpack-related-posts":[{"id":4234,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-receives-kenyan-government-approval-of-maersk-oil-farm-in\/","url_meta":{"origin":4060,"position":0},"title":"Africa Oil Receives Kenyan Government Approval of Maersk Oil Farm In","author":"","date":"January 11, 2016","format":false,"excerpt":"Africa Oil Corp.\u00a0has reported that the previously announced farm-out with\u00a0Maersk Oli and Gas has received approval from the Government of Kenya. This gives a green light for completion of the farm-out of Blocks 10BB, 13T and 10BA.At completion of the Maersk farmout, the new respective interests in each of Africa\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/11\/Africa-Oil-East-Africa-acreage.png?fit=399%2C498&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4328,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-completes-kenyan-farm-out-deal-with-maersk-oil\/","url_meta":{"origin":4060,"position":1},"title":"Africa Oil Completes Kenyan Farm-out Deal With Maersk Oil","author":"","date":"February 4, 2016","format":false,"excerpt":"Africa Oil reports that it has completed the previously announced (November 9, 2015) farmout with\u00a0Maersk oil and gas\u00a0related to Kenyan Blocks 10BB, 13T and 10BA having received $427 million. Africa Oil Corp. farm-out with\u00a0Maersk Oli and Gas received approval from the Government of Kenya This amount represents US$344 million of\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/11\/Africa-Oil-East-Africa-acreage.png?fit=399%2C498&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4389,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-completes-ethiopia-farm-out-deal-with-maersk-oil\/","url_meta":{"origin":4060,"position":2},"title":"Africa Oil Completes Ethiopia Farm Out Deal with Maersk Oil","author":"","date":"February 23, 2016","format":false,"excerpt":"Africa Oil Corp.\u00a0 has report that it has completed the previously\u00a0announced\u00a0farmout with Maersk Olie og Gas A\/S (Maersk Oil)\u00a0related to the South Omo and Rift Basin Blocks in Ethiopia. At completion of the Ethiopian farmout, Africa Oil received a payment of US$12.8 million from Maersk Oil. The resulting interests in\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/ethiopia-oil.png?fit=741%2C388&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/ethiopia-oil.png?fit=741%2C388&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/ethiopia-oil.png?fit=741%2C388&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/ethiopia-oil.png?fit=741%2C388&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4405,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-receives-12-month-extension-in-rift-basin-area-ethiopia\/","url_meta":{"origin":4060,"position":3},"title":"Africa Oil Receives 12 month extension in Rift Basin Area Ethiopia","author":"","date":"February 28, 2016","format":false,"excerpt":"Africa Oil has received a twelve month extension to the initial exploration period in the Rift Basin Area and will now expire in February 2017. 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M\u00f8ller \u2013 M\u00e6rsk have both approved the acquisition of 100% of the equity of the E&P company\u00a0Maersk Oil & Gas, a wholly owned subsidiary of A.P. M\u00f8ller \u2013 M\u00e6rsk, by Total in a share and debt transaction. 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