Burren will farm out 10% of its current 35% interest (i.e. reducing Burren's residual interest to 31.5%) for a net consideration of US$35 million, payable 50% in cash and 50% via a rebate of profit oil accruing to SNPC under the terms of the PSA.
Maurel & Prom ('M&P'), the operator under the PSA is also farming out 10% of its interests on similar terms. Upon completion SNPC will have a 10% interest in the Kouilou PSA as a whole, with a 8.9% interest in the M'Boundi field.
Completion of the transaction, which is still awaiting signature by the Minister of Hydrocarbons, is conditional upon several matters, being primarily:
Ratification by the Congolese parliament is required for certain of the conditions precedent to be satisfied : completion is expected later this year. In addition it is expected that parliamentary approval for the PSA governing the La Noumbi permit area, which has been awaited for some time, will be procured, allowing exploration activity to commence around the end of 2005 / beginning of 2006.
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