Africa focused oil and gas explorer Bowleven which operates in Kenya and Cameroon has announced it will be terminating the Strategic Alliance Agreement with Petrofac after the two companies reached a mutually acceptable agreement.
Under the agreement Bowleven will pay $9 million to Petrofac upon completion of the farm-out transaction as full and final settlement and the strategic alliance agreement shall terminate.
“We have worked closely with Petrofac over the last two years and we appreciate their co-operation in reaching a mutually acceptable termination agreement,” says Bowleven CEO Kevin Hart.
The agreement that was reached in November 2012 saw Petrofac tasked with executing the planned development through the provision of project management, engineering, procurement and construction services, and was to invest up to US$500 million as part of Bowleven’s financial commitment to develop the asset.
Petrofac’s investment which was to target mostly Bowleven West Africa operations would be remunerated through a share of Bowleven’s production revenue.
In Kenya Bowleven provides technical and other services in block 11B together with Adamantine energy which is the operator.
Bowleven also operates and has equity interests in two permits in Cameroon, the offshore shallow water Etinde Permit and the onshore Bomono Permit. The group operates in Cameroon through its wholly owned subsidiary EurOil Ltd, an indigenous Cameroon company.