Africa Finance Corporation (AFC), an infrastructure solutions provider in Africa, has announced that it has financed Aker Energy A.S., a subsidiary of Aker ASA
AFC’s support is through investing in US$100mn of convertible bond notes with a commitment to participate in follow on fundraising activities.
Aker Energy will use the funds to finance the development of the Deepwater Tano Cape Three Points Block (DWTCTP), an offshore Ghana block containing multiple oil fields.
Samaila Zubairu, president and CEO of AFC, said, “This is an opportunity for AFC to invest alongside a technically and financially strong sponsor that requires project development expertise and public sector advice in Africa, both of which AFC is ideally placed to offer.”
The asset is owned by joint venture partners including Aker Energy (50 per cent), Lukoil (38 per cent), Fueltrade (two per cent) and a 10 per cent carry for the Ghana National Petroleum Corporation (GNPC), wholly owned by the government of Ghana.
The Pecan field, which is the most valued in the DWTCTP block and the field to be developed in the first phase, is an oil field estimated to contain reserves of about 334mn boe. This investment is aligned with AFC’s overall natural resources strategy, which involves building a portfolio of value-added assets across the energy value chain.
By taking an early equity financier role in operational or near-operational upstream assets, AFC can enhance the revenue potential of African states to generate revenue required for investment in infrastructure and social services for its growing populations.
This investment also marks the beginning of AFC and Aker’s mutually beneficial relationship in the exploration and production sector across the African continent. The Republic of Ghana (Ghana) which became an AFC sovereign shareholder in 2018, having acceded to membership in 2011, will benefit from this project through increased revenue and government royalty and taxation income.
The DWTCTP field is one of Ghana’s principal hydrocarbon assets and is expected to contribute to Ghana’s near term target of an annual production volume of 500,000 boepd.
Jan Arve Haugan, CEO of Aker Energy, added, “We value AFC’s vote of confidence by collaborating with Aker Energy and the commitment to further strengthening this partnership going forward. We believe AFC will be a valuable partner to help Aker Energy navigate the opportunities and challenges that lies ahead of us.”
