Africa Oil provides update on Maersk farmout transaction
Monday, May 22, 2017
Africa Oil Corp. (“Africa Oil”, “AOC” or the “Company”) (TSX:AOI)(OMX:AOI) is pleased to report that further to the previously announced farmout agreement between Africa Oil and Maersk Olie og Gas A/S (Maersk) (press release 4th February 2016), the companies have agreed to payment terms related to the US $75 million advance development carry. Africa Oil is due to receive equal quarterly payments of US $18.75 million at the end of each calendar quarter during 2018. Upon Final Investment Decision (“FID”) of the South Lokichar development project, Maersk may be obligated to carry AOC for an additional amount of up to US $405.0 million dependent upon meeting certain thresholds of resource growth and timing of first oil.

Africa Oil CEO, Keith Hill, commented, “We are very pleased to reach payment terms with Maersk. This agreement further strengthens our balance sheet as we move towards project sanction at the end of 2018.”

The Joint Venture Partners in the South Lokichar Basin are Tullow Oil plc (50% and operator), Maersk 25% and Africa Oil 25%.

About Africa Oil Corp.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.

For more information, please visit:

For additional information on this project, please visit our ProjectsOGP database

Member Profiles

Featured Profile

Featured Videos

Featured Case Studies