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UHHHH,...Keith?
Morokoy: Epic post!!! Huge obstacle out of the way.
Epic Games Stock: No Stock symbol (Private Company)
The largest owner of Epic Games stock is Epic’s founder and CEO, Tom Sweeney, who owns over 50% of the company. The next largest owner of Epic Games is the Chinese conglomerate Tencent Holdings (TCEHY). Tencent, the world’s largest video game company, owns around 40% of Epic Games’ stock.
Major investors in Epic include Baillie Gifford, Fidelity, Lightspeed Venture Partners, the Ontario Teachers’ Pension Plan Board, T. Rowe Price, Blackrock, David Tepper, KKR, and Smash Ventures.
Epic Games last funding round in August 2020 raised $17.3 billion from private investors, meaning Epic can raise enormous amounts of money without a stock.
Epic Games Stock Price
Epic Games currently has no defined stock price because it is not publicly listed on any stock exchange. It is entirely owned by the founder Tom Sweeney, venture capital groups, and Tencent Holdings, one of the world’s largest video companies. To buy Epic games stock, you need to buy stock in Tencent Holdings.
Jefferies Likes Alphabet, Apple Amid Peaking Economic Growth
By: TheStreet | December 10, 2021
• 'We envisage a [2022] macro environment in which growth has peaked, while inflation remains sticky,' Jefferies analysts said.
Jefferies analysts have put together a list of stocks that they think will stand up to peaking economic growth and sticky inflation next year, including Alphabet (GOOGL), Apple (AAPL) and Walmart (WMT).
“We envisage a macro environment in which growth has peaked, while inflation remains sticky, forcing central banks to withdraw liquidity,” they wrote in a commentary, cited by CNBC.
“At the same time, there is fiscal stimulus in the U.S. and Japan which continues to cushion growth.”
MSCI AC World index stocks will see earnings growth drop to 6.1% in 2022 from 49.3% this year, the analysts predicted. They see U.S. earnings growth exceeding 10% next year.
“While earnings growth would still be reasonably high, stretched valuations amid relatively tighter monetary conditions would limit the upside,” they said. “Overall, [developed markets] remain a favorite, led by the U.S. and Japan.”
In this environment, the analysts like value stocks that don’t face structural problems, reasonably-priced growth stocks and quality stocks.
If AOIFF (AOC) is fully committed to a share return policy... and I have been fully committed to that prospect, then I have wandered into the minefield of certifiable lunacy as I just bot another 6,000 shares.
Anybody concerned about the $275B deal Cook has with Communist China?
Hope the company can explain why they caved to China. I got a lot riding on AAPL. Cook better have it together.
Yeah, douginil. I agree with toptiger. Need at least a 10Cent divi. Anything less won't move the needle much.
Douginil. I know this is not an anodyne, but look at the shadows. They reveal a presence of something good about to happen. I called Sophia Shane (IR person for AOC) and asked her (via message) about the timing of the shareholder return program. She refused to inform me of any material information. (Good for her) But, that tells me something is coming soon. No answer is an answer. They cannot let out prematurely any material news affecting the stock price. Keep the faith.
Thankyou douginil and tamtam. Can you guys believe we are still hanging around $1.50 per share???? Soon as we hear from KH about a dividend, I'm going in beyond anything close to intelligent. Forget prudence. Hoping it's in the 10 cents a share neighborhood, (per quarter).
Mon, November 29, 2021, 8:00 PM
In this article:
VANCOUVER, BC, Nov. 30, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI", "Africa Oil" or "the Company") is pleased to announce that it has received a dividend from Prime Oil and Gas Cooperatief UA ("Prime"). View PDF version.
Prime has distributed a US$100 million dividend with a net payment to Africa Oil of US$50 million related to its 50% shareholding. Since acquiring its 50% shareholding in Prime for a cash consideration of $520 million in January 2020, Africa Oil has received ten dividends from Prime for a total amount of $400 million, representing 77% of the cash consideration paid.
The Company intends to apply US$23 million from the latest dividend, to repay the outstanding balance of its corporate loan and will subsequently become debt-free. The Company will continue to have access to an undrawn availability of $62 million under its corporate loan facility. This undrawn amount is available until May 2022 and can be utilised for general corporate purposes, subject to customary covenants. The Company also had a cash balance of $38.9 million as of September 30, 2021.
Keith Hill, Africa Oil's President and CEO, commented: "It is less than two years since we closed the acquisition of our 50% shareholding in Prime for $520 million. We have so far received $400 million in dividends, and I am pleased that we have repaid the $250 million loan that was arranged for this acquisition. Considering the strength of our debt-free balance sheet, access to material credit liquidity, our share of Prime's cash resources and future cash flows, I am confident that we can deliver on our strategic objectives of shareholder capital returns and the acquisition of producing assets. And of course, most immediately, we look forward to the drilling results from our high impact Venus-1 exploration well, offshore Namibia."
The Company also reports the following share capital and voting rights update in accordance with the Swedish Financial Instruments Trading Act. As a result of the issuance of 105,904 common shares in connection with the settlement of restricted share units under the Company's long-term incentive plan during the month, the number of issued and outstanding shares of the Company has increased to 474,467,355 common shares with voting rights as at November 30, 2021.
Oilprice.com
Biden’s Blunder Could Send Oil Prices To $100
Editor OilPrice.com
Sun, November 28, 2021, 8:00 AM
When President Biden announced earlier this week that the federal government would be releasing 50 million barrels of crude from the strategic petroleum reserve, perhaps those around him expected prices to go down significantly and stay down. Instead, prices rose, and OPEC+ gave a heavy hint it might cut supply.
By Friday, oil prices fell sharply, but that was due to a new wave of Covid-19 fears and has little if anything to do with Biden's announcement that oil would be unleashed from emergency stockpiles.
But what comes next could send oil to $100.
Energy analysts warned that a release of SPR may not have the desired effect. They explained that however many barrels the U.S. or its partners in Asia and the UK release, OPEC could withhold more and for longer. They explained that the SPR crude is sour, and refiners don't like it because it needs additional processing to reduce the sulfur content—a process that requires natural gas, which is also expensive currently. These explanations fell on deaf but determined ears. Now, analysts are warning about $100 Brent.
"It's not going to work simply because the strategic petroleum reserve — any country's strategic petroleum reserve is not there to try to manipulate price," said Stephen Schork, editor of the Schork Report, speaking to CNBC earlier this week. "There's a considerable amount of bets out there that we will see $100 a barrel oil," he added.
John Kilduff of Again Capital put it even more bluntly: "The battle lines are being drawn," he told Bloomberg this week. "Certainly, OPEC and the Saudis can win this in that they are holding all the cards. They can keep more oil off the market than a SPR release can put on the market. If you see WTI get under $70, then I would expect a response from OPEC+."
What's more, the planned release of these 50 million barrels will not happen overnight. It won't happen over a week, either. In fact, the plan is, per an Argus report, to offer long-term loans of up to 32 million barrels of crude from the SPR—sour crude, at that—and to sell another 18 million barrels over several months. For starters, there is no guarantee about the degree of uptake of the oil loans. For seconds, 18 million barrels over a few months amounts to less than 1 million barrels per day on average.
Related: Oil Nations Are Selling Billions In Green Bonds
Meanwhile, OPEC is preparing for a worst-case scenario that involves the release of a total of 66 million barrels in January and February. The cartel itself seems to be aware that the chances of that sort of oil flood happening are next to non-existent, given the U.S. plans, but the important thing is that it is preparing. And, according to OPEC sources who spoke to Argus, while most in the extended OPEC+ group feel they don't need to tweak the original agreement of adding 400,000 bpd to daily output, there is a stipulation that allows for a three-month pause in these additions.
OPEC alone accounts for 40 percent of global crude oil production. The U.S.—the world's largest single producer—accounts for about 18.6 percent. And then there's Russia, with about 12 percent of global oil supply, which is a partner of OPEC. So, together, OPEC and Russia, without even counting the Central Asian producers, account for half the world's oil production. They are, indeed, holding all the cards.
douginil. Seems to me that the price of oil reflects this fear of a new Covid variant, B.1.1.529 out of S. Africa. Therefore OPEC must cut production to keep prices higher.
The larger shareholders of AOC concerned with liquidity? Get the share price up and you'll have liquidity. How to get the Share price up? Four (4) ways. Reverse split, Buyback, Huge special dividend with follow on quarterlies, and merger/acquisition. All IMO.
Meandering thoughts. Did Africa Oil pull Prime's irons out of the fire, or did Prime give Africa Oil the worlds best deal??? Seems like this relationship is functioning very well. (Merger??? of equals) Seems like a Black Swan possibility..Imagine...They would own Africa.
Confirmed with IR.. Something good, this way comes. Apologies to Shakespeare.
Biden panics. Releases 50mm bbl of oil. Why? Politics of gas prices. Why are gas prices going up? We all know demand and supply.. Oil prices jumped today because the traders know the SPR is only a flash fix and will not last. Demand will continue and oil will rise again. The storm continues.
I'm long AAPL. Love to sell covered calls, but not now. Too much upside coming soon. Great article. Thanks.
Really??? Dropping like a stone. Was counting my chickens there for awhile. LOL
Agreed TD. The proof will be in the size of the dividend. 5cents and I will only nibble. Ten cents and I sell the house and back up the truck. The divi as a catalyst could mean $5-$6 per share by Jan - Feb 2022.
Thanks douginil. I distinctly heard (during conference call) 5 cargos remaining for the 1mm BBL Afromax vessel. If hedged by Prime, it is estimated be at at $69 per barrel. The five banks (the lending syndicate) requires a hedging for secure & confident lending services.
I also believe the 5 cargos are scheduled before end of year 2021. If that is the case, We should soon get a gigantic divi end of November and end of January 2022.
5 cargoes; $69 /BBL X 5,000,000 = $172,500,000. NET to AOC.
SO WHY THE SELLOFF???
I think our brethren in Toronto panicked over inflation fears. They should read the conference call abstract.
You're welcome Tamtam. I think we are all a little anxious about a partnership for the Kenya pipeline. Interesting that KH is fully on board to reduce carbon footprints by reducing flaring and using the gas to provide energy to the pumps and other appurtenant systems, (heating the pipeline to move poil more quickly), etc.
Fully Agree Douginil.
Yes Tamtam. I should have been more clear. The five cargos remaining, I believe, refer to the Nigerian crude that Prime will produce. Thus 50% to AOC. Did not mean to imply Kenyan oil which currently is transported by truck.
Thanks douginil.
What I gathered from the call, includes Prime to issue the next dividend very soon, How much??? don't know. However, I think I heard KH say that we have 5 cargos to sell this year. Each cargo is via an AfroMax ?? vessel of 1,000,000 bbls each. That's a huge chunk of dough. ($240,000,000 or $120,000,000 net to AOC. Almost all debt will be paid off with the next Prime divi. New wells coming on line. 5 banks make up their lending syndicate. Average sales price per bbl last nine months was $48 per barrel. That was really low but I guess the cost of hedging. However cost to lift was $5 per barrel. Next year Keith expects price per barrel to be $78. (Or a price spike)
Production guidance from OPEC was very strong and in the upper range, (of daily allowance I'm guessing).
They put in 3 bids on other accretive assets. They are not interested in a merger unless it is a merger of equals. (GOOD!) They are not interested in acquiring an asset that (for example) throws off only 4,000 barrels per day. Must be much larger.
Final field development plan for Kenya to be completed by EOY. Keith is excited about this prospect.
Apparently, PRIME/AOC produces 25% OF NIGERIAN CRUDE.
Last 9 months AOC earned $419,000,000.. EPS woulda been bigger but most of that cash paid off a chunk of their debt.
They are very optimistic about gas fields in South Africa.
Some ocean going rigs will be on sight (not sure where) within a week.
And last, LORD WON'T YOU BUY ME A MERCEDES BENZ???
Thanks douginil. Got into the call just in time. What an amazing company and Keith Hill is a superb leader for this company. Recommend everyone read the report or listen to the webcast.
Got my attention, DG.
douginil...I'm in Hawaii and would like to listen to the conference call. We are 2 hours behind West Coast time. Any idea what time I should make the call to AOC conference. I'm thinking 4 AM Hawaii time. And yes, I'm very anxious about divis.
News: From Website
OK. EPS $0.28 per share. Shareholder accretive programs to be finalized by end of year. That is buyback and Divis.
Africa Oil Announces Strong Third Quarter 2021 Financial Results
November 15, 2021
View PDF
VANCOUVER, BC, Nov. 15, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to announce its financial and operating results for the three months ended September 30, 2021, and to provide selected results for Prime Oil and Gas Cooperatief UA ("Prime"), a company in which Africa Oil has a 50% equity interest. View PDF version.
Highlights
Net income of $58.5 million (first nine-month 2021 total of $135.8 million) and end of quarter cash balance of $38.9 million.
Received two dividends for a total amount of $112.5 million from Prime during the quarter (received three dividends in the first nine-month 2021 for total of $150.0 million).
Reduced the corporate debt facility to $23.0 million with an end of quarter positive net cash position of $15.9 million.
Selected Prime's third quarter 2021 results net to Africa Oil's 50% shareholding*:
end of quarter cash position of $244.9 million and debt balance of $514.7 million;
average daily working interest ("W.I") production of 27,500 barrels of oil equivalent per day ("boepd) and economic entitlement production of 30,100 boepd (84% light and medium crude oil and 16% conventional natural gas)2,3; and
EBITDA4 of $191.5 million (first nine-month 2021 total of $489.8 million) and cash flow from operations of $128.4 million (first nine-month 2021 total of $466.6 million).
All assets produced without OPEC+ quota restrictions during the third quarter of 2021. Overall production performance during the period fell within the top quartile of the 2021 management guidance and reservoir performance remains broadly in line with expectation.
Post third quarter 2021, Prime signed and closed a pre-export finance facility ("PXF Facility") for an initial amount of $150 million and a 7-year tenor. The use of proceeds of the PXF Facility is to partly repay Prime's RBL facility and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval.
Venus-1 exploration well on Block 2913B, offshore Namibia, is expected to spud by the end of this year. Venus-1 will target a large basin floor fan system with significant undiscovered petroleum initially in place that has been identified using 3D seismic data.
________________________________
* Important information: Africa Oil's interest in Prime is accounted for as an investment in joint venture. Refer to Note 1 on page 4 for further details. Please also refer to other notes on pages 4 and 5 for important information on the material presented.
Africa Oil President and CEO Keith Hill commented: "Third quarter 2021 was a very strong period for us with the receipt of two significant Prime dividends. These have resulted in substantial deleveraging and I am delighted that Africa Oil is now in a positive net cash position. We have access to significant liquidity, including $62 million of undrawn credit facility, cash on hand, our 50% share of Prime's cash balance and operating cash flows from Prime. Therefore, I am confident that we can deliver on two strategic goals; the acquisition of accretive producing assets and implementing shareholder capital return programs. The Africa Oil team is working hard on both fronts and in relation to shareholder returns, we are finalizing the management plans that will be considered by the board of directors in December. I expect to update the markets once we have the board approved plan by end of this year. "
2021 Third Quarter Financial Results
(Thousands United States Dollars, except Per Share and Share Amounts)
30 September 2021
31 December, 2020
Cash and cash equivalents
38,854
40,474
Total assets
959,606
910,499
Long-term debt
23,000
141,000
Total liabilities
67,306
156,212
Total equity attributable to common shareholders
892,300
754,287
Nine months ended
Nine months ended
Three months ended
Three months ended
30 September, 2021
30 September, 2020
30 September, 2021
30 September, 2020
Share of profit from investment in joint venture
168,331
149,788
70,953
32,472
Share of (loss)/profit from investment in associates
(3,295)
(660)
(1,205)
(717)
Total operating income
165,036
149,128
69,748
31,755
Net operating income/(loss)
152,033
(75,518)
63,694
28,465
Net income/(loss)
135,810
(97,459)
58,506
21,189
Net income/(loss) per share - basic
0.29
(0.21)
0.12
0.04
Net income/(loss) per share - diluted
0.28
(0.21)
0.12
0.04
Weighted average number of share outstanding - basic ('000s)
472,973
471,738
473,505
471,950
Weighted average number of share outstanding - diluted ('000s)
477,268
471,738
477,799
475,150
Number of shares outstanding ('000s)
473,929
471,950
473,929
471,950
Cash flows (used in)/ provided by operations
(7,769)
(3,433)
(3,858)
(2,679)
Cash flows used in investing
140,408
(448,690)
112,286
18,944
Cash flows (used in)/provided by financing
(134,230)
153,185
(104,648)
(25,244)
Total change in cash and cash equivalents
(1,620)
(299,067)
3,764
(9,032)
Total change in equity
138,013
(85,171)
65,586
26,839
The financial information in this table was selected from the Company's unaudited consolidated financial statements for the three months ended September 30, 2021. The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the three months ended September 30, 2021 and 2020, and the 2020 Report to Shareholders and Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).
FINANCIAL POSITION AND EARNINGS
The Company recognized net operating income amounting to $63.7 million during the three months ended September 30, 2021, compared with a net operating income of $28.5 million during the same period in 2020. Included in the Company's share of profit from equity investments is profit from its 50% investment in Prime of $71.0 million in the third quarter of 2021 compared with $32.5 million during the third quarter of 2020. As at September 30, 2021, the Company had cash of $38.9 million, compared with cash of $40.5 million at December 31, 2020.
Prime distributed two dividends to its shareholders in the third quarter of 2021 with $112.5 million received by Africa Oil. Since completing the acquisition of a 50% shareholding in Prime in January 2020 for $520 million, Africa Oil has received 9 dividends from Prime for a total amount of $350.0 million.
On July 16, 2021, the Company closed a new corporate loan facility ("Corporate Facility") with $160 million committed by the lenders. On July 30, 2021, $98.0 million was drawn down under the Corporate Facility in order to repay the Company's previous term loan in full. Africa Oil made a repayment of the Corporate Facility from the proceeds of the second Prime dividend received during third quarter 2021, reducing the outstanding balance to $23.0 million. The undrawn Corporate Facility amount of $62.0 million is available to Africa Oil until May 12, 2022, subject to the satisfaction of customary covenants.
PRIME'S THIRD QUARTER 2021 PERFORMANCE
OPEC+ quotas impacting Egina field were relaxed in June 2021, enabling all assets to produce without restrictions during the third quarter of 2021. Overall production performance for the third quarter of 2021 fell within the top quartile of the 2021 management guidance and reservoir performance remains broadly in line with expectation. Prime's third quarter 2021 average daily W.I. production was 27,500 boepd and economic entitlement production was 30,100 boepd (84% light and medium crude oil and 16% conventional natural gas), net to Africa Oil's 50% shareholding in Prime.
During the third quarter of 2021, Prime was allocated four oil liftings with total sales volume of approximately 4.0 million barrels or 2.0 million barrels net to Africa Oil's 50% shareholding.
Prime has sold forward and hedged 100% of its 2021 cargoes at an average price of $62/bbl and six cargoes in the first half of 2022 at an average price of $69/bbl. These contracts are with counterparties including oil supermajors and commodity trading houses. The counterparties are part of groups with investment grade credit ratings. Prime has not hedged any of its planned cargoes for the second half 2022, giving the Company exposure to improving oil prices associated with the economic recovery.
Third quarter 2021 average operating cost of $5.2 per boe compares to second quarter 2021 average operating cost of $5.65 per boe and third quarter 2020 average operating cost of $4.4 per boe.
Prime achieved third quarter 2021 sales revenue of $164.1 million (first nine-month 2021 total of $445.0 million); EBITDA4 of $191.5 million (first nine-month 2021 total of $489.8 million) and cash flow generated from operating activities of $128.4 million (first nine-month 2021 total of $466.6 million), in each case net to Africa Oil's 50% shareholding. Capital expenditure during the quarter, net to the Company's shareholding was $9.6 million (first nine-month 2021 total of $15.3 million), which compares to the previous quarter expenditure of $3.1 million. The increase is due to the increased investment activity on Prime' assets including the drilling of one infill well on the Akpo field.
As of September 30, 2021, Prime had a cash balance of $489.7 million or $244.9 million net to Africa Oil's 50% interest. Prime's gross cash balance includes the security deposit payment of $305.0 million ($152.5 million net to AOC's 50% interest) received from Equinor in respect of the tract participation in the Agbami field. Prime also had an outstanding debt balance of $1,029.5 million or $514.7 million net to Africa Oil's 50% interest.
Post third quarter 2021, Prime signed and closed a pre-export finance facility ("PXF Facility") for an initial amount of $150 million. The PXF Facility is arranged by Shell Western Supply and Trading Limited and Africa Finance Corporation ("PXF Lenders") and has a 7-year tenor, extending the duration of Prime's debt profile on very competitive cost terms that are comparable to its RBL facility. The use of proceeds of the PXF Facility is to partly repay the RBL and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval.
2021 OPERATIONAL OUTLOOK
On August 16, 2021, the Nigerian President signed the Petroleum Industry Bill into law as the Petroleum Industry Act, 2021 ("PIA"). The PIA will change the terms that are applied to Prime's licenses on renewal, or on voluntary early conversion and renewal. A number of amendments to fiscal terms have been made and the Company's analysis of their impact is ongoing, although these are expected to be positive overall.
In July 2021, the OML 130 Gas Sales and Purchase Agreement was signed by Prime and all other parties, settling historical gas sales from July 2018. Payment is now anticipated in the fourth quarter 2021. This will result in an additional $87.0 million of sales revenue to Prime ($43.5 million net to Africa Oil's 50% shareholding) for the three-year period from July 2018. This agreement has de-risked Prime's future cash flow generation as it facilitates regular payments to Prime for future gas sales from OML 130 assets. There is no change to 2021 Management Guidance announced on February 26, 2021, which is copied below:
Guidance for Prime, net to AOC's 50% shareholding:
W.I. production (boepd)
24,000-28,000
Economic entitlement production (boepd)
26,000-30,000
Cash flow from operations (million)
$310-$4406
Capital investment (million)
$35-$50
Net Debt Repayment (million)
$210-$280
Africa Oil's corporate budget (million)
$18-$20
In Kenya, Africa Oil and its JV Partners (Tullow Oil and Total Energies) have completed the redesign of the Project Oil Kenya to ensure it is technically, commercially and environmentally robust. Africa Oil and its JV Partners have presented a draft Field Development Plan ("FDP") to the government of Kenya ("GoK") ahead of the plan to submit a finalised FDP by the end of 2021, in line with license extension requirements provided by the GoK in December 2020. At the same time Africa Oil and its JV Partners are actively seeking strategic partners for the project. Based on the revised plan, Africa Oil believes that this project is an attractive commercial prospect for investors looking to access the East Africa oil and gas sector in both the upstream and midstream. It is intended that a strategic partner will be secured ahead of a Final Investment Decision ("FID").
Through its 30.9% shareholding in Impact Oil & Gas ("Impact"), the Company has exposure to the Venus-1 exploration well in Block 2913B, offshore Namibia which is expected to spud by year-end 2021. Venus-1 will target a large basin floor fan system with significant undiscovered petroleum initially in place that has been identified using 3D seismic data.
Africa Oil, through its direct and indirect (through Impact) shareholdings, has an effective combined interest of 31.2% in Africa Energy Corp. ("Africa Energy"). These investments provide the Company with exposure to Block 11B/12B and Block 2B, offshore South Africa.
On Block 11B/12B, Africa Energy and its joint venture partners are contemplating an early production system ("EPS") for a phased development of Block 11B/12B. The joint venture is currently performing development studies and preparing a field development plan and an environmental application with the intention of agreeing gas terms and submitting an application for a Production Right before the Exploration Right expires in September 2022. The EPS would provide first gas and condensate production from the Luiperd discovery and would accelerate the Block 11B/12B development timeline by utilizing existing nearby infrastructure in the adjacent block in order to supply gas to existing customers in Mossel Bay. The development of Block 11B/12B will have positive implications for the South African economy and will be critical in facilitating the country's energy transition away from coal with a domestic natural gas supply.
On Block 2B, the operator of the license is re-tendering for a rig to enable the joint venture to drill the Gazania-1 well before the Exploration Right expires in November 2022.
Management Conference Call
Senior management will hold a conference call to discuss the results on Tuesday, November 16, 2021 at 09:00 (ET) / 15:00 (CET). The conference call may be accessed by dial in or via webcast:
Canada
+1 647 794 1826
North America toll free
800-289-0462
Sweden
+46 (0)8 5033 6573
Sweden toll free
0200 883 447
UK
0800 358 6374
Participant Passcode
202742
Webcast URL
https://event.webcasts.com/starthere.jsp?ei=1512166&tp_key=4a1d4a9163
Please join the event conference 5-10 minutes prior to the start time. A recording of the webcast will be available on the Company's website after the event.
NOTES
1.
The 50% shareholding in Prime is accounted for using the equity method and presented as an investment in joint venture in the Consolidated Balance Sheet. Africa Oil's 50% share of Prime's net profit or loss will be shown in the Consolidated Statements of Net Income/Loss and Comprehensive Income/Loss. Any dividends received by Africa Oil from Prime are recorded as Cash flow from Investing Activities. The guidance presented here is for information only.
2.
Aggregate oil equivalent production data comprised of light and medium crude oil and conventional natural gas production net to Prime's W.I. in Agbami, Akpo and Egina fields. These production rates only include sold gas volumes and not those volumes used for fuel, reinjected or flared.
3.
Net entitlement production is calculated using the economic interest methodology and includes cost recovery oil, tax oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied by Prime's effective working interest in each license.
4.
Earnings Before Interest, Tax, Impairment, Depreciation and Amortization ("EBITDA") is not a generally accepted accounting measure under International Financial Reporting Standards ("IFRS") and does not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with definitions of EBITDA that may be used by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
5.
Second quarter 2021 average operating cost was revised from $6.4 per boe to $5.6 per boe following post period reconciliations.
6.
Prime's cash flow from operations net to Africa Oil's 50% shareholding in the first nine-month 2021 amounted to $466.6 million. This includes the $152.5 million (net to Africa Oil) Agbami Security Deposit received from Equinor in second quarter 2021. Excluding this item, Prime's cash flow from operations for the first nine-month 2021 is $314.1 million.
7.
All dollar amounts are in United States dollars unless otherwise indicated.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
Additional Information
This information is information that Africa Oil is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 5:30 ET on November 15, 2021.
Advisory Regarding Oil and Gas Information
The terms boe (barrel of oil equivalent) is used throughout this press release. Such terms may be misleading, particularly if used in isolation. Production data are based on a conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
SOURCE Africa Oil Corp.
Shahin Amini, IR and Commercial Manager, shahin.amini@africaoilcorp.com, T: +44 (0)203 982 6800; Sophia Shane, Corporate Development, sophias@namdo.com, T: +1 (604) 806-3575
News
2021
News
Africa Oil Announces Strong Third Quarter 2021 Financial Results
November 15, 2021
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VANCOUVER, BC, Nov. 15, 2021 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to announce its financial and operating results for the three months ended September 30, 2021, and to provide selected results for Prime Oil and Gas Cooperatief UA ("Prime"), a company in which Africa Oil has a 50% equity interest. View PDF version.
Highlights
Net income of $58.5 million (first nine-month 2021 total of $135.8 million) and end of quarter cash balance of $38.9 million.
Received two dividends for a total amount of $112.5 million from Prime during the quarter (received three dividends in the first nine-month 2021 for total of $150.0 million).
Reduced the corporate debt facility to $23.0 million with an end of quarter positive net cash position of $15.9 million.
Selected Prime's third quarter 2021 results net to Africa Oil's 50% shareholding*:
end of quarter cash position of $244.9 million and debt balance of $514.7 million;
average daily working interest ("W.I") production of 27,500 barrels of oil equivalent per day ("boepd) and economic entitlement production of 30,100 boepd (84% light and medium crude oil and 16% conventional natural gas)2,3; and
EBITDA4 of $191.5 million (first nine-month 2021 total of $489.8 million) and cash flow from operations of $128.4 million (first nine-month 2021 total of $466.6 million).
All assets produced without OPEC+ quota restrictions during the third quarter of 2021. Overall production performance during the period fell within the top quartile of the 2021 management guidance and reservoir performance remains broadly in line with expectation.
Post third quarter 2021, Prime signed and closed a pre-export finance facility ("PXF Facility") for an initial amount of $150 million and a 7-year tenor. The use of proceeds of the PXF Facility is to partly repay Prime's RBL facility and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval.
Venus-1 exploration well on Block 2913B, offshore Namibia, is expected to spud by the end of this year. Venus-1 will target a large basin floor fan system with significant undiscovered petroleum initially in place that has been identified using 3D seismic data.
________________________________
* Important information: Africa Oil's interest in Prime is accounted for as an investment in joint venture. Refer to Note 1 on page 4 for further details. Please also refer to other notes on pages 4 and 5 for important information on the material presented.
Africa Oil President and CEO Keith Hill commented: "Third quarter 2021 was a very strong period for us with the receipt of two significant Prime dividends. These have resulted in substantial deleveraging and I am delighted that Africa Oil is now in a positive net cash position. We have access to significant liquidity, including $62 million of undrawn credit facility, cash on hand, our 50% share of Prime's cash balance and operating cash flows from Prime. Therefore, I am confident that we can deliver on two strategic goals; the acquisition of accretive producing assets and implementing shareholder capital return programs. The Africa Oil team is working hard on both fronts and in relation to shareholder returns, we are finalizing the management plans that will be considered by the board of directors in December. I expect to update the markets once we have the board approved plan by end of this year. "
2021 Third Quarter Financial Results
(Thousands United States Dollars, except Per Share and Share Amounts)
30 September 2021
31 December, 2020
Cash and cash equivalents
38,854
40,474
Total assets
959,606
910,499
Short-term debt
-
-
Long-term debt
23,000
141,000
Total liabilities
67,306
156,212
Total equity attributable to common shareholders
892,300
754,287
Nine months ended
Nine months ended
Three months ended
Three months ended
30 September, 2021
30 September, 2020
30 September, 2021
30 September, 2020
Share of profit from investment in joint venture
168,331
149,788
70,953
32,472
Share of (loss)/profit from investment in associates
(3,295)
(660)
(1,205)
(717)
Total operating income
165,036
149,128
69,748
31,755
Net operating income/(loss)
152,033
(75,518)
63,694
28,465
Net income/(loss)
135,810
(97,459)
58,506
21,189
Net income/(loss) per share - basic
0.29
(0.21)
0.12
0.04
Net income/(loss) per share - diluted
0.28
(0.21)
0.12
0.04
Weighted average number of share outstanding - basic ('000s)
472,973
471,738
473,505
471,950
Weighted average number of share outstanding - diluted ('000s)
477,268
471,738
477,799
475,150
Number of shares outstanding ('000s)
473,929
471,950
473,929
471,950
Cash flows (used in)/ provided by operations
(7,769)
(3,433)
(3,858)
(2,679)
Cash flows used in investing
140,408
(448,690)
112,286
18,944
Cash flows (used in)/provided by financing
(134,230)
153,185
(104,648)
(25,244)
Total change in cash and cash equivalents
(1,620)
(299,067)
3,764
(9,032)
Total change in equity
138,013
(85,171)
65,586
26,839
The financial information in this table was selected from the Company's unaudited consolidated financial statements for the three months ended September 30, 2021. The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the three months ended September 30, 2021 and 2020, and the 2020 Report to Shareholders and Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).
FINANCIAL POSITION AND EARNINGS
The Company recognized net operating income amounting to $63.7 million during the three months ended September 30, 2021, compared with a net operating income of $28.5 million during the same period in 2020. Included in the Company's share of profit from equity investments is profit from its 50% investment in Prime of $71.0 million in the third quarter of 2021 compared with $32.5 million during the third quarter of 2020. As at September 30, 2021, the Company had cash of $38.9 million, compared with cash of $40.5 million at December 31, 2020.
Prime distributed two dividends to its shareholders in the third quarter of 2021 with $112.5 million received by Africa Oil. Since completing the acquisition of a 50% shareholding in Prime in January 2020 for $520 million, Africa Oil has received 9 dividends from Prime for a total amount of $350.0 million.
On July 16, 2021, the Company closed a new corporate loan facility ("Corporate Facility") with $160 million committed by the lenders. On July 30, 2021, $98.0 million was drawn down under the Corporate Facility in order to repay the Company's previous term loan in full. Africa Oil made a repayment of the Corporate Facility from the proceeds of the second Prime dividend received during third quarter 2021, reducing the outstanding balance to $23.0 million. The undrawn Corporate Facility amount of $62.0 million is available to Africa Oil until May 12, 2022, subject to the satisfaction of customary covenants.
PRIME'S THIRD QUARTER 2021 PERFORMANCE
OPEC+ quotas impacting Egina field were relaxed in June 2021, enabling all assets to produce without restrictions during the third quarter of 2021. Overall production performance for the third quarter of 2021 fell within the top quartile of the 2021 management guidance and reservoir performance remains broadly in line with expectation. Prime's third quarter 2021 average daily W.I. production was 27,500 boepd and economic entitlement production was 30,100 boepd (84% light and medium crude oil and 16% conventional natural gas), net to Africa Oil's 50% shareholding in Prime.
During the third quarter of 2021, Prime was allocated four oil liftings with total sales volume of approximately 4.0 million barrels or 2.0 million barrels net to Africa Oil's 50% shareholding.
Prime has sold forward and hedged 100% of its 2021 cargoes at an average price of $62/bbl and six cargoes in the first half of 2022 at an average price of $69/bbl. These contracts are with counterparties including oil supermajors and commodity trading houses. The counterparties are part of groups with investment grade credit ratings. Prime has not hedged any of its planned cargoes for the second half 2022, giving the Company exposure to improving oil prices associated with the economic recovery.
Third quarter 2021 average operating cost of $5.2 per boe compares to second quarter 2021 average operating cost of $5.65 per boe and third quarter 2020 average operating cost of $4.4 per boe.
Prime achieved third quarter 2021 sales revenue of $164.1 million (first nine-month 2021 total of $445.0 million); EBITDA4 of $191.5 million (first nine-month 2021 total of $489.8 million) and cash flow generated from operating activities of $128.4 million (first nine-month 2021 total of $466.6 million), in each case net to Africa Oil's 50% shareholding. Capital expenditure during the quarter, net to the Company's shareholding was $9.6 million (first nine-month 2021 total of $15.3 million), which compares to the previous quarter expenditure of $3.1 million. The increase is due to the increased investment activity on Prime' assets including the drilling of one infill well on the Akpo field.
As of September 30, 2021, Prime had a cash balance of $489.7 million or $244.9 million net to Africa Oil's 50% interest. Prime's gross cash balance includes the security deposit payment of $305.0 million ($152.5 million net to AOC's 50% interest) received from Equinor in respect of the tract participation in the Agbami field. Prime also had an outstanding debt balance of $1,029.5 million or $514.7 million net to Africa Oil's 50% interest.
Post third quarter 2021, Prime signed and closed a pre-export finance facility ("PXF Facility") for an initial amount of $150 million. The PXF Facility is arranged by Shell Western Supply and Trading Limited and Africa Finance Corporation ("PXF Lenders") and has a 7-year tenor, extending the duration of Prime's debt profile on very competitive cost terms that are comparable to its RBL facility. The use of proceeds of the PXF Facility is to partly repay the RBL and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval.
2021 OPERATIONAL OUTLOOK
On August 16, 2021, the Nigerian President signed the Petroleum Industry Bill into law as the Petroleum Industry Act, 2021 ("PIA"). The PIA will change the terms that are applied to Prime's licenses on renewal, or on voluntary early conversion and renewal. A number of amendments to fiscal terms have been made and the Company's analysis of their impact is ongoing, although these are expected to be positive overall.
In July 2021, the OML 130 Gas Sales and Purchase Agreement was signed by Prime and all other parties, settling historical gas sales from July 2018. Payment is now anticipated in the fourth quarter 2021. This will result in an additional $87.0 million of sales revenue to Prime ($43.5 million net to Africa Oil's 50% shareholding) for the three-year period from July 2018. This agreement has de-risked Prime's future cash flow generation as it facilitates regular payments to Prime for future gas sales from OML 130 assets. There is no change to 2021 Management Guidance announced on February 26, 2021, which is copied below:
Guidance for Prime, net to AOC's 50% shareholding:
W.I. production (boepd)
24,000-28,000
Economic entitlement production (boepd)
26,000-30,000
Cash flow from operations (million)
$310-$4406
Capital investment (million)
$35-$50
Net Debt Repayment (million)
$210-$280
Africa Oil's corporate budget (million)
$18-$20
In Kenya, Africa Oil and its JV Partners (Tullow Oil and Total Energies) have completed the redesign of the Project Oil Kenya to ensure it is technically, commercially and environmentally robust. Africa Oil and its JV Partners have presented a draft Field Development Plan ("FDP") to the government of Kenya ("GoK") ahead of the plan to submit a finalised FDP by the end of 2021, in line with license extension requirements provided by the GoK in December 2020. At the same time Africa Oil and its JV Partners are actively seeking strategic partners for the project. Based on the revised plan, Africa Oil believes that this project is an attractive commercial prospect for investors looking to access the East Africa oil and gas sector in both the upstream and midstream. It is intended that a strategic partner will be secured ahead of a Final Investment Decision ("FID").
Through its 30.9% shareholding in Impact Oil & Gas ("Impact"), the Company has exposure to the Venus-1 exploration well in Block 2913B, offshore Namibia which is expected to spud by year-end 2021. Venus-1 will target a large basin floor fan system with significant undiscovered petroleum initially in place that has been identified using 3D seismic data.
Africa Oil, through its direct and indirect (through Impact) shareholdings, has an effective combined interest of 31.2% in Africa Energy Corp. ("Africa Energy"). These investments provide the Company with exposure to Block 11B/12B and Block 2B, offshore South Africa.
On Block 11B/12B, Africa Energy and its joint venture partners are contemplating an early production system ("EPS") for a phased development of Block 11B/12B. The joint venture is currently performing development studies and preparing a field development plan and an environmental application with the intention of agreeing gas terms and submitting an application for a Production Right before the Exploration Right expires in September 2022. The EPS would provide first gas and condensate production from the Luiperd discovery and would accelerate the Block 11B/12B development timeline by utilizing existing nearby infrastructure in the adjacent block in order to supply gas to existing customers in Mossel Bay. The development of Block 11B/12B will have positive implications for the South African economy and will be critical in facilitating the country's energy transition away from coal with a domestic natural gas supply.
On Block 2B, the operator of the license is re-tendering for a rig to enable the joint venture to drill the Gazania-1 well before the Exploration Right expires in November 2022.
Management Conference Call
Senior management will hold a conference call to discuss the results on Tuesday, November 16, 2021 at 09:00 (ET) / 15:00 (CET). The conference call may be accessed by dial in or via webcast:
Canada
+1 647 794 1826
North America toll free
800-289-0462
Sweden
+46 (0)8 5033 6573
Sweden toll free
0200 883 447
UK
0800 358 6374
Participant Passcode
202742
Webcast URL
https://event.webcasts.com/starthere.jsp?ei=1512166&tp_key=4a1d4a9163
Please join the event conference 5-10 minutes prior to the start time. A recording of the webcast will be available on the Company's website after the event.
NOTES
1.
The 50% shareholding in Prime is accounted for using the equity method and presented as an investment in joint venture in the Consolidated Balance Sheet. Africa Oil's 50% share of Prime's net profit or loss will be shown in the Consolidated Statements of Net Income/Loss and Comprehensive Income/Loss. Any dividends received by Africa Oil from Prime are recorded as Cash flow from Investing Activities. The guidance presented here is for information only.
2.
Aggregate oil equivalent production data comprised of light and medium crude oil and conventional natural gas production net to Prime's W.I. in Agbami, Akpo and Egina fields. These production rates only include sold gas volumes and not those volumes used for fuel, reinjected or flared.
3.
Net entitlement production is calculated using the economic interest methodology and includes cost recovery oil, tax oil and profit oil and is different from working interest production that is calculated based on project volumes multiplied by Prime's effective working interest in each license.
4.
Earnings Before Interest, Tax, Impairment, Depreciation and Amortization ("EBITDA") is not a generally accepted accounting measure under International Financial Reporting Standards ("IFRS") and does not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with definitions of EBITDA that may be used by other public companies. Non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
5.
Second quarter 2021 average operating cost was revised from $6.4 per boe to $5.6 per boe following post period reconciliations.
6.
Prime's cash flow from operations net to Africa Oil's 50% shareholding in the first nine-month 2021 amounted to $466.6 million. This includes the $152.5 million (net to Africa Oil) Agbami Security Deposit received from Equinor in second quarter 2021. Excluding this item, Prime's cash flow from operations for the first nine-month 2021 is $314.1 million.
7.
All dollar amounts are in United States dollars unless otherwise indicated.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
Additional Information
This information is information that Africa Oil is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 5:30 ET on November 15, 2021.
Advisory Regarding Oil and Gas Information
The terms boe (barrel of oil equivalent) is used throughout this press release. Such terms may be misleading, particularly if used in isolation. Production data are based on a conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
SOURCE Africa Oil Corp.
Shahin Amini, IR and Commercial Manager, shahin.amini@africaoilcorp.com, T: +44 (0)203 982 6800; Sophia Shane, Corporate Development, sophias@namdo.com, T: +1 (604) 806-3575
News
2021
If this is half true, we are sitting on a rocket.
Options Traders Are Betting On $300 Oil
By Tsvetana Paraskova - Nov 12, 2021, 1:00 PM CST
Options traders traded the equivalent of 5 million barrels of Brent at $250 and $300 call options
The resurgent activity with bets on $100 or $200 oil shows that more traders are getting into the energy market amid the global energy crunch
Adventurous options traders placed bets this week on oil prices hitting $250 and even $300 per barrel, betting for the first time this year that oil could exceed $250, ICE Futures Europe data cited by Bloomberg showed.
On Thursday, options traders traded the equivalent of 5 million barrels of Brent at $250 and $300 call options.
Call options give traders the right—but not the obligation—to buy assets at a certain price, the so-called strike price, by a certain date.
The amounts of call options at triple-digit strikes have soared in recent weeks, suggesting that more speculative traders are attracted by potential quick profits from options trades, which are relatively low-cost ways to speculate on the direction of an asset.
While $250 per barrel bets are the first call options traded this year, some traders have already bet on $200 and $215 oil in recent weeks, according to Bloomberg data.
Last month, exchange trade data showed that as oil prices hit multi-year highs, some speculative traders were betting on the options market that oil could exceed $100 a barrel by the end of this year and even reach a record $200 per barrel by the end of 2022.
The resurgent activity with bets on $100 or $200 oil shows that more traders are getting into the energy market amid the global energy crunch, and more of those speculators are bullish on oil prices.
$100 a barrel oil is no longer an outrageous bet, as it was at the start of this year, and even some investment banks believe that crude prices could hit the triple digits as soon as in the middle of next year.
Most recently, Bank of America said that Brent Crude prices could rise to as much as $120 per barrel in the first half of 2022 due to the global gas crisis, booming air travel with international flights returning, and a comeback of Asian demand.
By Tsvetana Paraskova for Oilprice.com
Jing Pan
Sat, November 13, 2021, 5:00 AM
In this article:
Buybacks are a common way for companies to return capital to shareholders.
Apple (AAPL)
Apple Inc. is an American multinational technology company headquartered in California.
Vytautas Kielaitis/Shutterstock
Any discussion of buybacks in today’s market wouldn’t be complete without mentioning tech gorilla Apple.
The reason is simple: Among all of the stocks trading in the U.S. stock market, Apple has been spending more on buybacks than any other company.
In Apple’s fiscal Q4, share repurchases totaled nearly $20 billion. In 2021, the company bought back $85.5 billion worth of stock.
It’s easy to see why: Apple is one of the largest companies in the world, commanding over $2.4 trillion of market cap. It also has a huge pile of cash — $191.8 billion the last time it reported.
CFO Luca Maestri recently said that the company continues to make progress toward its goal of “reaching a net cash neutral position over time.” So more buybacks are likely on the way.
Apple has enjoyed a rally with its stock price doubling since the beginning of 2020. If you’re on the fence about jumping in at elevated levels, some apps may give you a free share of Apple just for signing up.
You're welcome douginil. Interesting, no?
Africa has sights set on hydrocarbon haul despite global shift
Yousef Saba and Raya Jalabi
Fri, November 12, 2021, 2:50 AM
In this article:
By Yousef Saba and Raya Jalabi
DUBAI, Nov 12 (Reuters) - Several African countries plan to exploit their oil and gas reserves to tackle poverty and energy shortages, representatives gathered in Dubai said this week in the face of pressure to end fossil fuel extraction to curb global warming.
Officials and industry executives stressed that Africa as a whole has a relatively small carbon footprint, which Statista estimated accounted for 3.7% of global CO2 emissions in 2020.
"We want to develop our resources as Africa, just as our brothers in the West have done," John Munyes, Kenya's minister of petroleum and mining, told the Africa Oil Week conference in Dubai, which coincided with the second week of the United Nations COP26 climate summit https://www.reuters.com/business/cop in Glasgow, Scotland.
"Much of Kenya is renewables, we just want to tap into what God has given us: hydrocarbons," he added.
Across the African continent, where some 600 million people lack electricity, both well-established and emerging producers are seeking to accelerate hydrocarbon extraction.
"We understand that we have to mitigate the damage to the planet. That's why we have signed up to the energy transition," Thomas Camara, Ivory Coast's minister of mines, petroleum and energy, said.
"But for our African nations, we have to ensure that our populations have access to energy … We will not turn our back to oil and energy companies so we can ensure the happiness - and even the existence - of our populations."
Some two dozen African countries pitched their energy sectors to investors during the event in Dubai.
OPEC member Angola, where production peaked in 2008 and has been steadily declining for the past half-decade, plans to develop more fields including through licensing rounds for onshore blocks in 2023 and offshore blocks in 2025.
Output in 2031 is projected to slightly exceed last year's roughly 1.3 million barrels a day.
Ghana, which discovered oil in 2007 and began extraction at the end of 2010, will channel investments to oil and gas development to then use the proceeds to invest in infrastructure and social welfare such as healthcare and education, its deputy energy minister, Andrew Egyapa Mercer, said.
"We believe strongly in oil and gas, and in particular gas" to ensure reliable energy baseloads, he added.
CLOCK TICKING
Western oil and gas companies looking to develop deposits in Africa face growing pressure over environmental concerns, which are leading them to accelerate plans as the world transitions to renewable forms of energy such as solar and wind.
"We have to come up with processes that enable us to convert a discovery into production as quickly as we can, because the clock is ticking. The clock is ticking in terms of the energy transition," said Paul McCafferty, senior vice president Africa at Norwegian energy major Equinor.
Industry executives said among the challenges they now face was securing sufficient capital for hydrocarbon projects.
Top oil exporters Angola, and to a lesser extent Nigeria, are facing crude production declines due to lack of investment in expensive deepwater oil fields, partly because oil companies are allotting less funding to fossil fuels.
Africa Oil Corp CEO Keith Hill said the energy transition process needs to be balanced and that it was more of a 30-year process than a five or 10-year one.
For Uganda, hydrocarbons are necessary to reshape the economy, its energy minister said, and it is counting on a pipeline through Tanzania to the Indian Ocean coast that will help Uganda export its crude.
"We have a duty to provide jobs for our people. We have a duty to make sure that the distribution of electricity goes to the last person," Energy Minister Ruth Nankabirwa said.
(Reporting by Yousef Saba and Raya Jalabi; Writing by Ghaida Ghantous and Yousef Saba; Editing by Alexander Smith)
Thank you "douginil". Do you think that within 2 years or at least after the pipeline to Lamu is built, AOC can produce as much as 100,000 bopd or more? I'm hopeful that's the case.
Well...One hopes that a combination of shareholder returns includes divis, buybacks, Accelerated earnings thru larger number of bpod, and possibly a reverse split. Sure would love to see a 20 cent divi tho.
YES and all appurtenant structures and facilities including heating systems to flow oil and storage at Lamu.
INCREDIBLE!!! IS THIS A PERFECT STORM COMING OUR WAY???
Who knows????
INDEED!!!
Thanks douginil.. Full article here...as I couldn't access the article provided by Hikari.
News Wire
Company News
Investing
5h ago
Kenya to Raise $1 Billion in Debt Next Year for Oil Project
Verity Ratcliffe and David Herbling, Bloomberg News
(Bloomberg) --
Kenya plans to raise $1 billion of debt to buy a stake in an oil project operated by Tullow Oil Plc and its partners.
The fundraising is likely to happen next year as Tullow, Africa Oil Corp. and TotalEnergies SE have until December to submit a plan to develop the resource before their production sharing agreement with the government expires, Leparan ole Morintat, chief executive at National Oil Corp. of Kenya said in an interview.
National Oil Corp. will commence the fundraising to take up the back-in rights as soon as the field development plan has been submitted, Morintat said in Dubai.
The $3.4 billion project will be a game changer for East Africa’s largest economy that is a net fuel importer. Once complete it will include a pipeline to the coast for exports and an estimated output of 120,000 barrels a day, with expected gross oil recovery of 585 million barrels over the full life of the field.
The debt will be used as an equity injection in Kenya’s oil company to fund its portion of the project, which includes a heated pipeline.
Strategic Partners
Tullow and its joint venture partners are also seeking strategic investors for the Kenyan project. The national oil company is currently in talks with energy giant Saudi Aramco as well as other firms as it searches for a non-equity strategic partner for its downstream business.
“We are looking at signing a public-private partnership deal from a national oil corporation,” Morintat said. “Depending on how much capital outlay they are going to put in we can agree on the duration and terms and the kinds of security they want.”
The state-owned firm already has a memorandum of understanding with Aramco “to guide on negotiations,” according to Morintat. It is also talking to other players, but favors state-owned national oil corporations where government-to-government deals can be signed, he said.
If a partner isn’t secured, they will still go ahead but with expensive local capital, Morintat said.
©2021 Bloomberg L.P.