Africa Oil Corp. Corp (Africa Oil or the Company), a Canadian oil and gas company with producing and development assets in deep-water offshore Nigeria, has obtained approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the extension of a petroleum mining license offshore PML 52 for a period of 20 years, effective 24 November 2024. Africa Oil operates the license through Prime Oil & Gas Coöperatief U.A. (“Prime”).
Recognized for its premium, light crude output, PML 52 includes a 62.46% interest in the offshore Agbami field. PML 52 Participants include, the operator Chevron, with 32% interest, Famfa oil the concessionaire on the production sharing agreement with 60% interest, and Prime with 8% ownership in PML 52. Africa Oil has a 50% shareholding in Prime and on the completion of the Prime amalgamation transaction, it will have a 100% shareholding in Prime.
The company also received clearance from NURPC for the amalgamation transaction between Africa Oil Corp. and BTG Pactual Oil & Gas S.a.r.l. ("BTG Oil & Gas") to consolidate their joint 50:50 ownership shareholdings in Prime Oil & Gas Coöperatief U.A. ("Prime").
Under the terms of the definitive agreement, upon completion of the transaction, BTG Pactual Holding S.a.r.l. ("BTG Holding"), the entity which holds BTG Oil & Gas' interest in Prime, will amalgamate with a newly created subsidiary of Africa Oil. In turn, BTG Oil & Gas will receive newly issued common shares in Africa Oil, that will, based on the current outstanding share capital of Africa Oil, result in BTG Oil & Gas owning approximately 35% of the outstanding share capital of Africa Oil. The remaining approximately 65% of the enlarged Africa Oil (on a partially diluted basis) will continue to be held by existing Africa Oil securityholders. Torys is acting as counsel to Africa Oil.
Prime is a joint venture company between Africa Oil and BTG Oil & Gas with activity focused on exploration and production of oil and gas in Nigeria. With headquarters in Rotterdam and subsidiaries in Nigeria, Prime owns interests in two world-class producing deep-water assets located offshore Nigeria:8% participating interest in Chevron operated petroleum mining lease ("PML") 52 (Agbami field), and petroleum prospecting license ("PPL") 2003; and16% participating interest in TotalEnergies operated PML 2 (Akpo field), PML 3 (Egina field) and PML 4 (Preowei field), and PPL 261.
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