Gulf Oil and Gas accountACCOUNT

Tullow Formalises its Back-in Right to Dussafu PSC Offshore Gabon

Source: www.gulfoilandgas.com 12/18/2019, Location: Africa

Tullow Oil Gabon S.A. has formalised its longstanding and previously disclosed 10% back-in right to the Dussafu Production Sharing Contract (“PSC”).

Tullow and the existing parties to the PSC (jointly, the "Parties") have on 17 December 2019 entered into a deed of novation and amendment by which Tullow became party to the Dussafu joint operating agreement. Following the completion of the back-in right, the interests of the Parties in the PSC will be: BW Energy (73.5%), Tullow (10%), Gabon Oil Company (9%) and Panoro (7.5%).

The exercise of the back-in right was subject to Tullow reimbursing the other Parties for its share of historic costs related to the Dussafu development. The total amount has been disputed by the Parties. However, the Parties have now reached an agreement for the undisputed share of the costs, representing a total of USD 40.9 million as at the end of October 2019. The net amount payable by Tullow to the existing partners is USD 19.8 million after adjusting for Tullow’s net lifting entitlement since the commencement of oil production in September 2018 and some surplus cash-calls made on their behalf. The net amount payable to Panoro is USD 1.7 million.

Negotiations are ongoing to resolve the disputed costs, which amount to an additional USD 18.7 million. If an agreement is not reached, the dispute will be submitted to a simplified arbitration. Panoro’s share of disputed costs is 8.333%.

For more information about related Opportunities and Key Players visit West Africa Projects

Acquisitions and Divestitures News in Gabon >>

South Africa >>  10/28/2020 - Impact Oil & Gas Limited, a privately-owned, African-focused, exploration company, is pleased to announce that its wholly-owned subsidiary, Impact Afr...
Nigeria >>  10/26/2020 - Canadian Overseas Petroleum Limited, an international oil and gas exploration and development company focused on sub-Sahara Africa, is pleased to ann...

United States >>  10/26/2020 - Mosman Oil and Gas Limited, the oil exploration, development, and production company, announces it has today executed contracts to acquire an addition...
Egypt >>  10/25/2020 - Dana Gas PJSC has entered into a binding agreement with IPR Wastani Petroleum Ltd, a member of the IPR Energy Group (“IPR”) for the sale of its onshor...

Australia >>  10/23/2020 - Terra Nova Resources Inc. has received notice from Armour Energy Limited that Armour intends to exercise its option right (the “Option Right”) to acqu...
Brazil >>  10/23/2020 - Petrobras has started the opportunity disclosure stage (teaser), referring to the sale of a set of eleven onshore production field concessions, with i...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gabon Oil & Gas 1 >>  2 | 3 | 4 |

Oil & Gas Projects in Gabon >>

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.