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bmu

12/11/13 7:48 PM

#2423 RE: kayakbob223 #2422

Cepsa being our unnamed advisor would
be very interesting piece of the puzzle.
What a Christmas present that would be.

RemyX

12/11/13 8:25 PM

#2424 RE: kayakbob223 #2422

Bob, I don't think ERHC was in the CEPSA radar at the time the EEZ blocks were selected. However, I do think it possible that they developed an interest in ERHC when the Chad blocks were awarded. This was just after the time that IPIC acquired the rest of CEPSA. The ERHC Kenya blocks were announced the following year, just after Total began drilling in the JDZ. (Don't forget that it was Total who sold their shares in CEPSA to IPIC, enabling it to take control of the company.)

So, I believe ERHC has been on CEPSA's radar for awhile now and was interested in not only enlarging their African holdings, but utilizing Offor's influence in Africa to continue that process. Hence the initial outreach to ERHC for their Kenyan blocks.

I don't think the East African countries dislike the Arab oil countries per se, as much as they have been courting, or trying to court, Chinese investment. And, as you can assume, the Chinese don't want to compete with anyone...especially OPEC when it comes to cash. However, note that IPIC didn't have full control of CEPSA until 2011, and East Africa has been courting the Chinese for some time. I think that in the last several years, many of the East African countries, as well as other African countries, have had second thoughts about the Chinese. And while not necessarily backing away from them, decided to look at all their options.

IMHO, I think that ERHC and Offor just sorta fell into place at the right time for CEPSA and Kenya both. Toss in Chad, the EEZ, JDZ, and frankly, it would be a nice way for CEPSA to build a portfolio in one of the world's last pristine exploration areas.

All of this, as usual, IMO... :)