Petrofac will help fund development of Bowleven's Etinde assets
Edinburgh-based oil and gas exploration firm Bowleven has agreed a strategic alliance with Petrofac to pursue development opportunities in Cameroon.
Bowleven announced in March it had completed the £21.8 million sale of its Gabon offshore licence to Anglo-French oil and gas firm Perenco.
The company said the proceeds of that sale would provide additional working capital to progress its dual objectives of converting resources to reserves and further exploring the significant potential of the Douala Basin in Cameroon.
The tie-up announced today will see Petrofac provide engineering services to Bowleven's Cameroonian subsidiary Euroil to put together a development plan for first phase development of Bowleven's Etinde assets.
Under the terms of the tie-up, Euroil will pay Petrofac for these services and Petrofac will then deliver the infrastructure plan to develop the assets.
Petrofac will take a return on its investment through a share of the production revenues, with first production expected to begin by 2016.
Bowleven chief executive Kevin Hart said: "I am very happy that Bowleven, through our subsidiary Euroil, is entering into a proposed strategic alliance with Petrofac in respect of our planned Etinde phased development.
“This complementary union provides Bowleven with potential access to both investment capital and, just as importantly, Petrofac's extensive development experience.
“Petrofac's excellent track record of service provision, including training, will augment significantly Euroil's strong local presence and capability.
“Our alliance with Petrofac will help deliver first production from our Etinde project, and represents a major step towards our goal of converting resources to reserves in Cameroon.”
Andy Inglis, chief executive of Petrofac Integrated Energy Services, added: “Creating this strategic alliance at an early stage of the project offers Petrofac the opportunity to provide integrated services covering onshore and offshore facilities development, drilling services and training and operations, alongside the deployment of capital.
“This is in line with our strategy of providing our exploration-led customers with integrated project delivery services.”
Shares in Bowleven rose more than 20 per cent in early trading today on the announcement before falling back.