February 19, 2018 / 6:35 AM / 3 months ago

BRIEF-Aker ASA's Aker Energy to buy Hess Ghana, develop oilfield

Feb 19 (Reuters) - Aker Asa:

* AKER ENERGY, A 50-50 JOINT VENTURE BETWEEN AKER ASA AND TRG AS, REACHES AGREEMENT TO ACQUIRE HESS GHANA WITH AN AIM TO BUILD A SIGNIFICANT E&P ACTIVITY IN GHANA

* ‍AKER ENERGY TO ACQUIRE ITS INTERESTS IN GHANA CONSISTING OF A 50 PERCENT PARTICIPATING INTEREST IN DEEPWATER TANO CAPE THREE POINTS BLOCK​

* ‍TOTAL CASH CONSIDERATION FOR TRANSACTION IS USD 100 MILLION, CONSISTING OF USD 25 MILLION PAYABLE UPON CLOSING OF TRANSACTION AND A FURTHER USD 75 MILLION PAYABLE UPON APPROVAL OF PLAN FOR DEVELOPMENT AND OPERATION​

* ‍ACQUISITION IS SUBJECT TO APPROVAL FROM RELEVANT GHANAIAN AUTHORITIES AND OTHER CUSTOMARY CLOSING CONDITIONS​

* ‍DWT/CTP BLOCK COVERS APPROXIMATELY 2,010 SQUARE KILOMETRES IN A PROLIFIC PETROLEUM REGION​

* ‍IN LAST TEN YEARS, SEVEN EXPLORATION WELLS AND FIVE APPRAISAL WELLS HAVE BEEN DRILLED ON THIS BLOCK​

* ‍DISCOVERED CONTINGENT RESOURCES ARE ESTIMATED TO BE 550 MILLION BARRELS (2C) WITH A REMAINING PROSPECTIVE VOLUME UPSIDE OF APPROXIMATELY 400 MILLION BARRELS​

* ‍AKER ENERGY IS CURRENTLY PROGRESSING A COMMERCIALLY ROBUST DEVELOPMENT SOLUTION WITH A FAST-TRACK FIRST PHASE TARGETING APPROXIMATELY 400 MILLION BARRELS​

* ‍FIELD DEVELOPMENT CONCEPT WILL BE BASED ON A FPSO WITH A SUBSEA PRODUCTION SYSTEM​

* ‍SUBSEA PRODUCTION SYSTEM WILL BE DESIGNED TO FACILITATE RAPID TIE-BACKS TO CENTRALLY LOCATED FPSO IN SECOND PHASE​

* ‍PDO WILL BE SUBMITTED IN 2018 WITH ANTICIPATED FIRST OIL IN 2021​

* ‍AKER IS PLEASED TO HAVE BEEN INVITED INTO THIS JOINT VENTURE BY TRG AND LOOKS FORWARD TO EXPLORING OPPORTUNITY OF BUILDING A SIGNIFICANT E&P ACTIVITY IN GHANA​

* ‍AKER ENERGY PLANS TO BUILD AN INDEPENDENT ORGANISATION TO MANAGE PLANNED EXPLORATION AND APPRAISAL PROGRAMS AS WELL AS ONGOING FIELD DEVELOPMENT WORK​

* ‍DURING A TRANSITION PERIOD, AKER ENERGY WILL DRAW ON CERTAIN KEY THIRD-PARTY CAPABILITIES, INCLUDING FROM AKER RELATED COMPANIES​

* ‍AKER BP WILL DELIVER LIMITED SERVICES TO AKER ENERGY ON MARKET TERMS AND REMAIN SEPARATE WITHOUT FUNDING COMMITMENTS OR OWNERSHIP INTERESTS IN AKER ENERGY, OR ANY GHANA RELATED ACTIVITIES​

* ‍TRG, A COMPANY OWNED BY KJELL INGE RØKKE AND PRINCIPAL SHAREHOLDER OF AKER, HAS BEEN INVOLVED IN GHANA SINCE 2014 AND HOLDS AN INTEREST IN SOUTH DEEPWATER TANO BLOCK (“SDWT”)​

* ‍SDWT BLOCK IS LOCATED IMMEDIATELY TO SOUTH OF DWT/CTP BLOCK AND MEASURES APPROXIMATELY 3,500 SQUARE KILOMETRES​

* ‍AKER ENERGY ENVISAGES SIGNIFICANT SYNERGIES BETWEEN DWT/CTP AND SDWT BLOCKS AND WILL TARGET A REGIONAL DEVELOPMENT​ Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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