Tullow Oil partner Africa Oil Corporation has sold half of its stake in three exploration blocks situated in the Lokichar basin for US$427mn to Maersk Oil & Gas of Denmark
The deal brings in Maersk as a partner in blocks 10BB, 13T and 10BA where it will own 25 per cent interest, reducing Africa Oil’s stake to 25 per cent while Tullow retains a 50 per cent interest in the blocks.
According to Africa Oil, the farm-out deal was approved by Kenyan authorities last month but both firms had not yet reached a mutual agreement.
Africa Oil stated the funds will enable further exploration activity in Kenya as it begins to start pumping crude. The firm will be eligible for an additional US$75mn from Maersk after it reports the existing amount of crude in the three blocks, which is expected to take place this quarter.
"We are very pleased to have completed the Kenyan portion of our farm out to Maersk. We feel Maersk will be an excellent partner in terms of technical and financial strength and experience critical to moving the development project forward," said Africa Oil's chief executive officer Keith Hill.
