Africa Oil completes acquisition of producing assets in Deepwater Nigeria

January 14, 2020

Torys represented Africa Oil with a team that included Janan Paskaran, David Kolesar and Jennifer Baugh (corporate/M&A).

On January 14, 2020, Africa Oil Corp. (“Africa Oil”) completed the acquisition of a 50% ownership interest in Petrobras Oil and Gas B.V. ("POGBV"). BTG Pactual E&P B.V. will continue to own the remaining 50% of POGBV. The total cash payment by Africa Oil to close the acquisition, including the Nigerian Government's consent fee, amounts to US$519.5 million. This includes a deferred payment of US$24.8 million which is due by end of June 2020.

The primary assets of POGBV are an indirect 8% interest in Oil Mining Lease 127, which contains the producing Agbami Field, and an indirect 16% interest in Oil Mining Lease 130, which contains the producing Akpo and Egina Fields. The three fields in these two licenses are all giant deep-water fields, located over 100 km offshore Nigeria, and are some of the largest and highest quality in Africa. All three fields have high quality reservoirs and produce light, sweet crude oil.

The acquisition was funded by cash on hand and a loan for US$250 million provided by Banco BTG Pactual S.A. POGBV has an existing reserve-based lending facility with a syndicate of international banks with a drawn amount of US$1.825 billion.

Africa Oil is a Canadian oil and gas company with producing and development assets in deep-water offshore Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana.

Further information can be found on Canada Newswire’s website.


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