Bowleven, Lukoil Clear Path for Perenco to Take Over New Age's Stake in Etinde Block, Off Cameroon

Perenco has moved a step closer to acquiring New Age's interests in the Etinde permit offshore Cameroon, and operatorship of the Etinde JV, after New Age's partners Bowleven and Lukoil chose not to exercise their pre-emption rights.

The proposed deal was first announced on June 7, and the 30-day pre-emption period New Age's partners in Etinde had has now passed.

A number of conditions to Perenco's acquisition of New Age's interest in the Etinde permit remain outstanding, including customary regulatory approvals by the Cameroon government, competition approval, and, exclusive exploitation authorization (EEA) Titulaire confirmation (by way of a letter issued by the Minister), Bowleven said Friday.

Still, the company expects that Perenco's joining the Etinde block will speed up the works towards the final investment decision for the field's development.

Eli Chahin, Chief Executive Officer of Bowleven plc, said: "The change of JV partner at Etinde is a key development in accelerating the path to FID with the Etinde JV to be spearheaded by a high caliber international operator with strong and longstanding roots within the Cameroon ecosystem. We believe that the project will benefit from best-in-class technical capability and a partner that brings additional optionality in ensuring a positive outcome for all stakeholders."

The Etinde Permit (former Block 7) lies in shallow water in the Rio del Rey Basin, offshore Cameroon, and comprises four proven reservoir intervals within the Pliocene and Miocene formations. New Age is the operator and owns a 37.5% stake. Lukoil owns 37.5%, and Bowleven 25%.

The block with an area of 460 km2 is located in the Cameroonian waters of the Gulf of Guinea, 20 km offshore right near the border with Equatorial Guinea. Water depth at the block ranges between 10 and 100 meters.

The Etinde JV partners concluded in December 2021 that the development option of exporting gas to Equatorial Guinea (‘EG’) was the preferred choice in terms of value, risks, and benefits to Cameroon and each individual joint venture member.