Etinde Permit (Cameroon) farm-in transaction
Vitol E and P Limited (VEP), part of the Vitol Group, is pleased to announce that it has entered into a farm-in agreement with Bowleven, the African focused oil and gas company, in respect of the Etinde Permit (Etinde, Cameroon).
The transaction has two parts. Firstly, the acquisition by VEP of an initial 25 percent interest in Etinde, in return for funding a $100 million gross work programme. Secondly, an option to acquire a further 25 percent interest, in return for funding an additional $100 million gross work programme and paying $25 million in cash to the group to progress Etinde activities. These investments will facilitate a significant exploration and appraisal programme and, if successful, move the assets towards development. In addition to it’s obvious marketing strengths, the Vitol Group will bring considerable development and project finance experience to the project for the mutual benefit of the joint venture.
The Etinde Permit area comprises three shallow water blocks in offshore Cameroon, West Africa and covers portions of the Rio Del Rey and Douala Basins, both of which have proven petroleum systems and discovered hydrocarbon resources. The Etinde PSC was signed on 22nd December 2008 and includes a three year exploration period from the date of signing.
The proposed farm-in is conditional upon normal regulatory approval by the Cameroon Government.
Further details on the transaction are available on Bowleven’s website, www.bowleven.com