Sherritt has been advised by Peberco Limited ("Peberco") that Peberco has entered into an arrangement with a Cuban state organization in respect of the termination of the production sharing contract for Block 7 for aggregate cash consideration of U.S. $140 million.
Sherritt's Oil business in Cuba comprises 100%-owned production sharing arrangements, a 40-45% interest in several fields in Block 7 pursuant to a joint operating agreement between Sherritt and Peberco, and a significant amount of wholly-owned drilling and operating equipment and associated inventories.
Sherritt's share of net oil production from Block 7 is approximately 4,500 bopd or 26% of Sherritt's overall Cuban net oil production. As a result of the arrangements entered into by Peberco, Sherritt expects to receive approximately U.S. $60 million as its share of the proceeds upon closing of that transaction in respect of its interests in Block 7. Sherritt continues to own and operate its 100%-owned production sharing arrangements.
Most Popular Articles
From the Career Center
Jobs that may interest you