Gen­eral En­ergy and part­ner buy stakes in two An­gola oil blocks

Daily Trust - - BUSINESS NEWS -

A joint ven­ture of oil and gas com­pany Genel En­ergy and White Rose En­ergy Ven­tures has agreed to buy 15 per­cent stakes in two ex­ploratory blocks off­shore An­gola for $281 mil­lion.

The ven­ture will ac­quire a 15 per­cent stake in Block 38 in the Kwanza Basin from China So­nan­gol for $59 mil­lion, of which Genel will pay a net sum of $30 mil­lion, and a 15 per­cent in­ter­est in the ad­ja­cent Block 39 from Nor­way’s Sta­toil for $222 mil­lion, Genel said on Thurs­day.

“This trans­ac­tion pro­vides a rare op­por­tu­nity to en­ter into a low risk, multi-bil­lion bar­rel re­source play,” Genel Chief Ex­ec­u­tive Tony Hay­ward, for­mer head of oil ma­jor BP, said in a state­ment.

Drilling on Block 39 is ex­pected to com­mence in the sec­ond quar­ter, fol­lowed by ex­plo­ration on Block 38, Genel said. Sta­toil is the op­er­a­tor of both blocks.

Genel plans to pay for the trans­ac­tions, which are sub­ject to govern­ment and part­ner ap­provals, through ex­ist­ing cash bal­ances, it said.

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