Energem Resources in Talks with CNODC for African Exploration Deal
Energem Resources and its controlled subsidiary FirstAfrica Oil and China National Oil and Gas Exploration Development Corporation on behalf of its parent, China National Petroleum Corporation Limited have entered into an agreement in principle on upstream projects in Africa. These talks have been ongoing since March, 2005.
The objective of the negotiations is to create within FAO the vehicle for new up-stream exploration and development projects of CNODC on the continent of Africa. This would occur through the vend-in to FAO by CNODC of a certain African oil and gas exploration project presently being pursued by CNODC and certain of CNODC's existing African projects. Energem would simultaneously proceed with the vend in to FAO of certain of its African up-stream assets, some of which are presently subject to an option or right of first refusal by FAO.
The net effect of these transactions, if successfully concluded, would be a 51% holding or such other controlling interest as may be agreed in FAO on the part of CNODC, who would provide substantial technical and financial capacity to take the enlarged FAO forward and a minority holding on the part of Energem who would continue to provide to FAO the benefit of its African logistical and operation capacity and its network of relationships across the continent.
While management is proceeding forward with negotiations and anticipate a successful conclusion, there can be no certainty that this will occur. The transaction is subject to, inter alia, the acquisition by CNODC of the further asset to be vended into FAO, the process of due diligence and independent valuations by all parties involved and regulatory and other approvals as may be required.
As advisers in this process Energem Resources Inc. have engaged Macquarie
Bank Limited, CNODC is advised by Standard Chartered Bank and FAO has engaged
N M Rothschild & Sons Limited.
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
- CNPC Plans to Cut Gas Supplies to Industrial Users-State Media (Nov 06)
- China's CNPC Starts Third Natural Gas Pipeline To Shanghai (Oct 13)
Company: Energem more info
- Energem Disposes of Stake in BowLeven (Aug 01)
- FirstAfrica Terminates Chad, Mali Options (Aug 22)
- FirstAfrica Option to Acquire Energem Chad Extended to Allow Due Diligence (Jun 08)
Company: FirstAfrica Oil more info
- BowLeven Posts Loss for Second Half 2006 (Mar 22)
- BowLeven: FirstAfrica Offer Unconditional (Jan 26)
- FirstAfrica and BowLeven Enter into Credit Facility (Dec 07)