Mwana Africa Inks JV with Energy Equity Resources
Mwana Africa, the pan-African resource company, has entered into a joint venture agreement with Energy Equity Resources Limited, a privately owned oil and gas group with international exploration and production assets. Under the agreement Mwana and EER intend to jointly develop African oil and gas exploration and production assets, and have agreed the terms of a memorandum of understanding concerning the manner in which these developments will be undertaken.
The joint venture is currently pursuing minority interests in five assets. Of these, discussions around two Angolan assets - one production and one advanced stage exploration - have recently progressed into detailed negotiation, following in each case the signing of a memorandum of understanding between the joint venture and the vendors.
These developments mark an important first step in Mwana's entry into the African oil and gas sector and potentially broaden the geographic spread of Mwana's business to include Angola in addition to Mwana's existing activities in DRC, Ghana and Zimbabwe.
Energy Equity Resources has exploration and production interests worldwide with a particular focus on the West African region including Nigeria, Angola, Gabon, Mauritania, Sudan, Sao Tome and Principe, Equatorial Guinea and Libya.
Commenting on the announcement, Kalaa Mpinga, Chief Executive Officer of Mwana Africa, said:
"We encounter significant opportunities in the African oil and gas sector and therefore are pleased to be entering this market with such high quality partners as Energy Equity Resources. Together we believe we have the right technical and management skills to create substantial value for shareholders, and this once again underlines the interest of potential partners in working with Mwana."
"This move is consistent with our strategy of exploiting opportunities across different countries and resources, and also of being the preferred vehicle for African entrepreneurs. This move both adds significant breadth to our portfolio and enhances our capabilities as we develop into a major resource group on the African continent"