Saudi Arabia: Consolidating power and austerity tested

Earlier this week, Saudi Arabia announced two pieces of news that the oil markets will be keeping a close eye on. In this latest episode of palace intrigue, King Salman has taken further steps to consolidate power in the Salman branch of the royal family and reversed some of the austerity measures implemented in 2016, the latter signalling tears in the fabric of the social contract with the Saudi public. King Salman’s sons, Abdulaziz bin Salman and Khaled bin Salman, will become Minister of State for Energy and Saudi Ambassador to the US respectively. Prince...

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More innovative investment from Schlumberger for Sound Energy

Sound and Schlumberger have agreed to extend their partnership under the existing Field Management Agreement. In an era where more innovative financing arrangements are being seen, Schlumberger will be granted 27.5% interest in the Meridja and Tendrara Relinquished Areas in exchange for providing services. Schlumberger will carry out the upcoming geophysical programme which will include: 2,600km of new 2D seismic covering the Paleozoic across...

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Premier sells out of Pakistan

Premier has announced the disposal of its Pakistan business for USD65.6 million to Al-Haj General Trading Co. The sale process for these assets was initiated in 2015 after an unsolicited approach and culminates with today's announcement.The Pakistan assets comprise six non-operated producing gas fields which produced c.47mmcfpd and generated c.USD41 million in 2016. Premier has been present in Pakistan since 1988 and in 1990, made the Qadirpur...

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FAR AMI with CNOOC in Senegal and The Gambia

On 31st March, FAR announced that it had entered into an Area of Mutual Interest Agreement with Chinese state giant CNOOC for the joint co-operation on the evaluation of and entry into new opportunities across Senegal and The Gambia. This follows on FAR’s farm-in to 80% of Blocks A2 and A5 in Gambia from Erin Energy earlier this week. The announcement on the arrangement with CNOOC follows: “FAR has signed an Area of Mutual Interest (“AMI”)...

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Shell sells onshore Gabon to Carlyle

On 24th March, Shell announced the sale of its onshore Gabon assets to Assala Energy Holdings (a portfolio company backed by Carlyle Group). Assala will pay USD587 million and assume debt of USD285 million, taking “enterprise value” to c.USD870 million. Shell will also receive up to a further USD150 million in contingent payments depending on oil prices and performance. This compares with a Wood Mackenzie NPV10 of c.USD600 million and implies...

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Bowleven Bomono farm-out

Bowleven and Victoria Oil & Gas ("VOG") have signed a farm-out agreement relating to the Bomono production sharing contract. VOG is a domestic Cameroon gas supplier, and gas upcoming production from Bomono fits in with its strategy of expanding local supply. Bowleven will retain a 20% operated interest in the Bomono PSC and VOG will have an 80% interest. Bowleven will receive £100,000 worth of new ordinary shares in VOG and a 3.5% royalty...

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Perenco acquires Gabonese assets from Total

On 27th February Total announced that it had agreed the sale of its Gabonese assets to Perenco for USD350 million. Perenco will acquire: Total Participations Petrolières Gabon ("TPPG") a wholly owned subsidiary of Total which has interests in 10 assets; and 5 assets from Total Gabon, the publicly listed entity in which Total owns 58.3% and the government of Gabon 41.7% The package will comprise of 12 fields (some are owned by ‎TPPG and Total...

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