Africa Oil will pay Lundin Petroleum consideration of approximately $20 mn
Swedish independent oil and gas exploration and production company Lundin Petroleum has signed an agreement for the sale of its wholly owned subsidiaries, Lundin East Africa and Lundin Kenya, to Africa Oil.
Lundin East Africa holds Lundin Petroleum’s interests in and operatorship of production sharing contracts (PSCs) covering blocks 2, 6, 7 and 8 in the Ogaden Basin region in the south of Ethiopia and covering the Adigala Area in northern Ethiopia.
Lundin Kenya holds Lundin Petroleum’s operated interest in the PSC for Block 10A and its non-operated interest in the PSC for Block 9 in the Anza Basin region in the northwest of Kenya.
The Africa Oil transaction also includes the transfer of an option which Lundin Petroleum holds over blocks 35 and M10-A in Somalia, currently in force majeure.
Africa Oil will pay Lundin Petroleum consideration of approximately $20 million, which will be funded through a loan from Lundin Petroleum to Africa Oil maturing December 31, 2011. Completion of this transaction remains subject to all applicable government and partner approvals.
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with assets in Europe, Africa, Russia and the Far East.