• Thursday, December 07, 2023
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Pan Petroleum agrees to sell stake in OML 113


Panoro Energy ASA’s wholly-owned subsidiary Pan Petroleum Aje Limited has agreed in principle the terms of sale with Nigerian company Lekoil for its 6.502 percent participating interest in the OML 113 license offshore Nigeria, which includes the Aje field, for a total consideration of $30 million to be paid in cash upon closing.

According to a statement last week, execution of the agreement will take place subject to waiver of

pre-emption rights held by the other partners to the Joint Operating Agreement.

Jan Kielland, chief executive officer, Panoro Energy, said: “We are pleased to announce that we have reached commercial terms for the sale of this asset and are close to executing the transaction. This divestment will significantly strengthen Panoro Energy’s financial position and shows that we have been successful in executing on our divestment strategy.”

The transaction with effective date of Jan 1, 2013 comprises a divestment of the company’s total interest in the OML 113 license. Under the Joint Operating Agreement the existing partners have a 30 days pre-emption period which started May 17, 2013 after which a Sale and Purchase Agreement with the buyer is expected to be executed if the existing partners do not exercise their pre-emptive rights.