Octant Energy Corp (Octant) has entered into three agreements with subsidiary companies of Afren to acquire assets in Kenya and Tanzania
The assets acquired by Canada-based Octant include Block L17/L18 and Block 1 in Kenya, and the Tanga Block in Tanzania. The acquisition is important for the development of these assets and the region, especially following Afren going into administration earlier this year. The deal ensures that a team with regional experience and knowledge takes forward the respective production sharing contracts (PSC) and continues delivery of near term actionable items on these assets.
Richard Schmitt, President of Octant said, “I am encouraged to be working with assets I know well from my past experiences. This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further move towards energy security and domestic growth. For me, being a part of East African growth and development again is a great opportunity and privilege.”
The acquisition of the PSCs by Octant remains conditional on customary approvals from the respective governments. Once approval is received, Octant will complete the acquisition of the PSCs from Afren within seven days. At present, Octant is evaluating its future capital requirements with respect to the three PSCs.
