Petrofac Agrees Strategic Alliance with Bowleven
Press Release
6 November 2012
PETROFAC LIMITED
PETROFAC AGREES STRATEGIC ALLIANCE WITH BOWLEVEN
Petrofac and Bowleven, the Africa-focused oil and gas company, have agreed a strategic alliance to support the proposed development of the Etinde Permit, offshore Cameroon.
The alliance represents an opportunity for Petrofac to leverage its extensive capabilities to support Bowleven's proposed development and builds on the company's presence in West Africa.
Under the terms of the strategic alliance, which is subject to Bowleven shareholder approval, Petrofac will provide engineering capability to Euroil, Bowleven's Cameroonian subsidiary, to support the delivery of a Field Development Plan (FDP) for the proposed first phase of the development, pending satisfactory completion of Euroil's appraisal of its asset. Prior to approval of the FDP, Petrofac will be remunerated by Euroil for the provision of its service capability.
Subject to an agreed FDP and satisfaction of certain other conditions, including co-venturer and government approvals, the strategic alliance's risk service arrangements envisage that Petrofac will subsequently execute the planned development through the provision of project management, engineering, procurement and construction services, and will invest up to US$500 million as part of Bowleven's financial commitment to develop the asset. Petrofac's investment would be remunerated through a share of Bowleven's production revenue.
Andy Inglis, Chief Executive, Petrofac Integrated Energy Services said: "We are delighted to be working with Bowleven to help them unlock the value of their Etinde Permit. Creating this strategic alliance at an early stage of the project offers Petrofac the opportunity to provide integrated services covering, onshore and offshore facilities development, drilling services and training and operations, alongside the deployment of capital. This is in line with our strategy of providing our exploration-led customers with integrated project delivery services."
Kevin Hart, Chief Executive of Bowleven Plc added: "I am very happy that Bowleven, through our subsidiary Euroil, is entering into a proposed strategic alliance with Petrofac in respect of our planned Etinde phased development. This complementary union provides Bowleven with potential access to both investment capital and, just as importantly, Petrofac's extensive development experience. Petrofac's excellent track record of service provision, including training, will augment significantly Euroil's strong local presence and capability. Our alliance with Petrofac will help deliver first production from our Etinde project, and represents a major step towards our goal of converting resources to reserves in Cameroon."
The details of the agreement are available on Bowleven's website: www.bowleven.com
Ends
For further information contact:
Tulchan Communications Group Ltd +44 (0) 20 7353 4200
Stephen Malthouse
Martin Robinson
petrofac@tulchangroup.com
Notes to Editors
Bowleven:
Bowleven is an Africa-focused oil and gas group, based in Edinburgh and traded on AIM. It holds significant equity interests in onshore and offshore exploration acreage in Cameroon and onshore acreage in Kenya.
The Group has a strong and experienced management team with first-class technical expertise and a track record of successfully finding, financing and delivering oil and gas projects to market.
Etinde Permit Overview:
Bowleven operates three shallow blocks in the Etinde Permit area. Bowleven currently has a 75% equity interest and Vitol E&P Limited has a 25% equity interest in the Etinde Permit. Blocks MLHP-5, MLHP-6 and MLHP-7 are located near hydrocarbon-bearing regions on the West African coast including offshore Nigeria, Equatorial Guinea and Angola. The blocks are located across the Rio del Rey basin and the Douala Basin, together referred to as the Etinde Permit.
The Permit covers approximately 2,316 km2. The water depths are shallow, from the shoreline up to approximately 70 metres maximum depth. A production sharing contract was signed over the Permit in December 2008.
Petrofac
Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil and gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC).
Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its customers' needs across the full life cycle of oil and gas assets.
With around 17,200 employees, Petrofac operates out of seven strategically located operational centres, in Aberdeen, Sharjah, Abu Dhabi, Woking, Chennai, Mumbai and Kuala Lumpur and has a further 24 offices worldwide.
For additional information, please refer to the Petrofac website at www.petrofac.com.
This information is provided by RNS
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