Support The Moscow Times!

LUKoil Buys Into Cameroonian Offshore Project

Russia's No. 2 oil producer LUKoil has bought a 37.5 percent share in the Etinde project off the coast of Cameroon from Edinburgh-based oil and gas explorer Bowleven, both companies said Tuesday in online statements.

At the same time, New Age African Global Energy has bought a 12.5 percent stake from Bowleven, raising the group's share to 37.5 percent.

The deals will see Bowleven's share drop from 75 percent to 25 percent while earning $250 million from the sale.

LUKoil and New Age will pay Bowleven a combined $170 million on completion of the deal, $40 million at the project's final investment decision, which is expected in 2015, and will cover $40 million in costs for two appraisal wells, according to Bowleven.

LUKoil said that the deal will be completed once Bowleven's shareholders and the Cameroonian government have given it their blessing.

The Etinde Permit is situated in the Gulf of Guinea and comprises three licensed blocks with a total area of 2,300 cubic meters. Thirteen of the 16 wells drilled in the the area have already yielded positive results and there are plans to drill two more in 2015.

See also:

LUKoil in Talks With Hess to Buy Stake in Offshore Ghana Project

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more