Oil and as firm Vaalco Energy has paid a US$4.5 million settlement fee to Angola National Agency of Petroleum, Gas, and Biofuels (ANPG), for offshore block termination.
The Houston-based independent energy company said that the settlement finalized the termination of Vaalco’s rights, liabilities and outstanding obligations for Block 5/06 in Angola and its exit from the country.
The cash payment was made after the recent publishing of an executive decree from the Ministry of Mineral Resources and Petroleum. The financial impact of the Settlement Agreement was recognized in the first quarter of 2019.
Cary Bounds, Vaalco’s Chief Executive Officer, commented, “We are extremely pleased to have fulfilled all the terms of our Settlement Agreement to exit Angola and we offer our sincere gratitude to the National Concessionaire for their pragmatic approach to helping us reach this material milestone."
Cary added: "Finalizing the Settlement Agreement has removed considerable uncertainty over the financial impact of exiting Angola. As we prepare for our upcoming drilling campaign offshore Gabon, we are at an exciting juncture for the Company and remain wholly focused on delivering profitable growth and meaningful value for our shareholders.”