Canadian Oil Company takes over AAOG Congo

12 Mai 2020

Brazzaville, Congo,  May 12 (Infosplusgabon) - Canadian oil company, Zénith Energy, has announced the 100% acquisition of the Congolese subsidiary of Anglo African oil and Gas (AAOG), operator of the Tilipia field, Infosplusgabon learned on Tuesday in Brazzaville, from the Congolese Ministry of Hydrocarbons.

The ceding company, AAOG, had a majority stake of 56% in the Tilapia oil field and even planned to launch drilling operations in April. However, on May 4, the directors of AAOG approved, at a general meeting, the new agreement concluded on April 17 with the Canadian company, Zénith Energy.

The latter succeeded in obtaining a conditional modification protocol to change the terms of an agreement which, initially, covered all or part of the 56% of AAOG on the Onshore producer license of Tilapia.

Meanwhile, the AAOG group has made the novation of 100% of the inter-company loans with the Congolese subsidiary of AAOG to Zenith Energy on the date of realization, which amounts to approximately 12.5 million pounds sterling or 9.3 billion CFA francs.

Zénith Energy is currently working on the conclusion of a regulatory process necessary to have the transaction approved by the Congolese government.

After the authorization obtained, Zénith Energy will operate the site for 25 years.

Site production is expected to increase to 1,500 barrels per day after the completion of development work. With the acquisition agreement, Zénith Energy acquires a debt from AAOG, estimated at US$ 5.3 million, approximately 3.2 billion CFA francs.

FIN/ INFOSPLUSGABON/GVB/GABON2020

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