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4 days ago
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Equinor Offers $1.75B Bonds
This article was first published on Rigzone here Equinor ASA has entered into underwriting agreements for the sale of debt instruments with a total principal amount of $1.75 billion. The offering consists of $550 million notes due June 2028 with a 4.25 percent interest, $400 million notes due September 2030 with a 4.5 percent interest and $800 million notes due June 2035 with a 5.125 percent interest. The interests are payable semi-annually, according to a regulatory filing Wednesday. The unsecured notes will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The underwriters are Barclays Capital Inc., BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and JP Morgan Securities LLC. Equinor Energy AS is guarantor. The offering is scheduled to close June 3. '[T]he net proceeds from the sale of securities will be used for general corporate purposes, which may include working capital, the repayment of existing debt (including debt incurred in connection with acquisitions) or the financing of acquisitions', Equinor told the United States Securities and Exchange Commission. As of the end of the first quarter the Norwegian majority state-owned company had a current finance debt including lease liabilities of $7.03 billion. Non-current finance debt including lease liabilities stood at $22.74 billion, of which $21.16 billion is unsecured and $1.58 billion secured. Total equity was $45.86 billion. Total finance debt and equity was $75.63 billion. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> Last week Equinor and Polenergia reached financial close securing over EUR 3 billion for the Baltyk II offshore wind project and over EUR 3 billion for Baltyk III (around $6.76 billion in total). The wind projects on the Polish side of the Baltic Sea will have a combined capacity of 1,440 megawatts (720 MW each), enough to power two million Polish homes, according to the 50-50 co-venturers. Full commercial generation is expected 2028. 'The individual project finance packages will fund the capital investment and the other expenses of each of the projects during the construction process, totaling approximately EUR 7.2 billion', Equinor said in a statement May 23. 'Following strong interest from lenders, Baltyk 2 and Baltyk 3 have secured competitive terms and conditions', Equinor added. 'The final group, comprising of around 30 financial institutions, includes the most experienced in the sector along with many of Equinor's core banks, the Nordic Investment Bank and the European Investment Bank'. The EIB pledged EUR 700 million, making it the biggest lender for the projects, the European Union-owned bank said separately. To contact the author, email More From The Leading Energy Platform: Eni to Develop Three PV Plants for Marelli OMV to Build Major Green Hydrogen Plant in Lower Austria Baker Hughes Bags Data Center Gas Turbine Deal JP Morgan Highlights Memorial Day Travel Effect on Global Oil Demand >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Record Breaking Shareholder Payouts Under Threat, Rystad Warns
This article was first published on Rigzone here In a release sent to Rigzone recently by the Rystad Energy team, Rystad warned that 'record breaking shareholder payouts are now under threat as [the] oil price hovers at $60 [per barrel]'. 'Western energy supermajors are faced with an increasingly difficult challenge - either keep their promise of returning ever-higher shareholder returns or risk spurning investors to save their balance sheets,' the company stated in the release. Rystad noted in the release that record cash has been allocated to shareholders, but added that, with recent double-digit dips in oil prices not reversing, these payouts will be increasingly difficult to maintain. The company estimated in the release that the majors 'will likely need to reduce both investment and shareholder payouts to balance their cash flows in the current oil price environment'. Total shareholder payouts by BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies reached $119 billion in 2024, Rystad highlighted in the release, pointing out that this beat the previous record set in 2023. 'The payout ratio - shareholder payouts as a share of corporate cash flow from operations (CCFO) - climbed to 56 percent, well above the 30-40 percent range that was typical from 2012 to 2022,' Rystad said in the release. 'If shareholder payouts remain at 2024 levels throughout 2025, this would imply that companies distribute more than 80 percent of their cash flow to investors, based on first quarter CCFO as a proxy for full-year performance,' it added. 'This would mark a sharp and highly unsustainable jump from the 56 percent payout ratio recorded in 2024. However, many firms have established payout targets tied to CCFO, and based on current cash generation levels, shareholder payouts could fall by 20-40 percent in 2025,' it continued. Rystad noted in the release that, to keep up with this increasing payout ratio, the majors have been sustaining shareholder payouts in part by drawing down cash reserves. 'Following a peak of nearly $160 billion between the third quarter of 2022 and the first quarter of 2023, aggregate cash reserves have steadily declined, reaching just above $120 billion as of the first quarter of 2025,' Rystad highlighted. 'If current payout levels are sustained throughout the year, total shareholder payouts could again reach $119-$120 billion in 2025, matching the record set in 2024,' it added in the release. Rystad warned in the release, however, that there are several downside risks to this estimate. 'First, maintaining these payout levels would imply that the majors are distributing over 80 percent of their cash generation, based on first quarter 2025 CCFO as a proxy for full-year performance,' it said. 'Second, the recent decline in oil prices - now hovering around $60 per barrel - could force the majors to make a difficult choice between cutting buybacks, which would be unpopular with investors, or using their balance sheets to support current repurchase levels,' it added. 'Third, several companies have formal payout ratio targets linked to CCFO. For example, BP, Eni, and TotalEnergies have stated targets shareholder returns of 30-40 percent of CFFO, while Shell targets 40-50 percent,' it continued. 'Applying these payout targets to current cash flow levels, total shareholder payouts could fall by approximately 20 percent to 40 percent from $119 billion to around $70 to $95 billion in 2025,' Rystad projected in the release. Espen Erlingsen, Head of Upstream Research at Rystad Energy, said in the release, 'recent market volatility has left the majors with few economically attractive options that both allow for reinvestment while maintaining a competitive capital returns framework'. 'As companies like Shell and ExxonMobil continue to push ahead with large-scale buyback programs despite shrinking cash inflows, the durability of these strategies is in question,' Erlingsen added. 'For now, the majors are holding the line. But if oil prices remain depressed, adjustments may be inevitable. Buybacks - typically more flexible than dividends - are likely to be the first lever pulled,' Erlingsen continued. The Rystad head went on to highlight in the release that 'all the majors have thus far upheld their shareholder payout guidance, despite weakening market fundamentals'. 'Shareholders have been accustomed to a stronger commodity price environment over the last few years, and recent market shocks will undoubtedly have a lasting impact on payout levels and investor expectations,' Erlingsen noted. 'Although the drop in oil prices creates downside risk for shareholder returns, the majors will remain reluctant to scale back their capital returns framework in the near-term,' Erlingsen went on to state. Shell, BP, TotalEnergies Rigzone contacted Shell, BP, TotalEnergies, Eni, ExxonMobil, and Chevron for comment on Rystad's release. Shell declined to comment. None of the other companies have responded to Rigzone at the time of writing. In capital markets day 2025 slides posted on Shell's website back in March, Sinead Gorman, Shell's Chief Financial Officer, said, 'our dividend remains a financial priority, and our confidence in sustaining a progressive approach is well supported, with our dividend breakeven at around $40 per barrel'. 'Additionally, given that we view share buybacks as an attractive use of our cash, we will continue to allocate capital towards buybacks, even at a $50 per barrel world utilizing our balance sheet strength if necessary,' Gorman added. In its first quarter 2025 results statement, which was posted on its website in April, BP said, 'our policy is to maintain a resilient dividend'. 'Subject to board approval, we expect an increase in the dividend per ordinary share of at least four percent per year. For the first quarter, BP has announced a dividend per ordinary share of eight cents,' it added. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> 'Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40 percent of operating cash flow, over time,' it continued. 'Related to the first quarter results, BP intends to execute a $0.75 billion share buyback prior to reporting the second quarter results. The $1.75 billion share buyback program announced with the fourth quarter results was completed on 25 April 2025,' BP went on to state. In a statement made during a meeting with TotalEnergies' board of directors on April 29, TotalEnergies CEO Patrick Pouyanne said, 'confident in the company's ability to reach its 2025 underlying growth objective and taking into account the strength of its balance sheet … the board of directors has confirmed the distribution of the first interim dividend of EUR 0.85/share [$0.96/share] for fiscal year 2025, an increase of 7.6 percent compared to 2024 and consistent with the attractive dividend growth guidance announced in February'. 'Furthermore, it has also decided to again continue share buybacks for up to $2 billion in the second quarter despite a softening price environment with Brent below $70 since the beginning of April and an uncertain geopolitical and macroeconomic context,' he added in the statement, which was included in the company's first quarter 2025 results statement that was posted on the company's site on April 30. Eni, ExxonMobil, Chevron In a statement posted on its site on May 16, Eni announced that, 'following the authorization granted by the Shareholders' Meeting held on 14 May 2025', a new share buyback program would be launched 'in the next days'. 'The new Share Buyback Program, to be executed by April 2026, will concern up to a maximum of 315 million of Eni's shares (approximately 10 percent of share capital), up to a total maximum of EUR 1.5 billion [$1.6 billion], as announced on 27 February 2025 in the context of the Capital Markets Update,' it added. 'This amount may be increased up to a total maximum of EUR 3.5 billion [$3.9 billion], in case of upside scenarios of the Cash Flow From Operations,' it continued. 'The new Share Buyback Program will have the purpose of paying to the Shareholders an additional remuneration compared to the distribution of dividends, therefore, the treasury shares acquired will be cancelled without reduction of the share capital, by July 2026, in accordance with the resolutions of the Shareholders' Meeting held on 14 May 2025,' it went on to state. In a statement posted on its site on May 14, Eni revealed that a meeting of its shareholders resolved to 'approve the distribution for, and in place of, the payment of the dividend relating to financial year 2025 of a sum of EUR 1.05 [$1.19] per share in tranches'. In its first quarter results statement, which was posted on En's site in April, the company highlighted a 'five percent increase in FY '25 dividend to EUR 1.05 per share'. Also in its first quarter results statement, Eni said adjusted cash flow before working capital was EUR 3.4 billion [$3.8 billion], 'significantly covering gross capex of EUR 1.9 billion [$2/1 billion]'. 'The resulting free cash flow of EUR 1.5 billion and the proceeds from the portfolio management of about EUR 3 billion [$3.3 billion], mainly relating to the closing of the KKR 25 percent investment in Enilive, funded EUR 1.2 billion [$1.3 billion] of cash returns to shareholders (including the third instalment of the 2024 dividend for EUR 0.76 billion [$0.86 billion]) and contributed to reduce net borrowings of almost EUR 1.8 billion [$2.0 billion] to EUR 10.3 billion [$11.6 billion] from 2024 year-end,' Eni added in the statement. Eni CEO Claudio Descalzi said in the company's first quarter results statement, 'we remain financially disciplined and resolute on leveraging our competitive advantages built on exploration, proprietary technologies, and innovative business models, to deliver transformation and generate value for our shareholders'. In its first quarter results statement, which was posted on its site earlier this month, ExxonMobil highlighted that 'shareholder distributions of $9.1 billion included $4.3 billion of dividends and $4.8 billion of share repurchases, consistent with the company's announced plans'. The company's chairman and CEO, Darren Woods, said in that statement, 'in this uncertain market, our shareholders can be confident in knowing that we're built for this'. 'The work we've done to transform our company over the past eight years positions us to excel in any environment,' he added. In Chevron's first quarter 2025 statement, which was also posted on the company's site earlier this month, Chevron highlighted that it returned $6.9 billion of cash to shareholders during the quarter, including share repurchases of $3.9 billion and dividends of $3.0 billion. The company added in the statement that its board of directors declared a quarterly dividend of $1.71 per share, payable June 10, 2025, 'to all holders of common stock as shown on the transfer records of the corporation at the close of business on May 19, 2025'. In that statement, Mike Wirth, Chevron's chairman and chief executive officer, said, 'this quarter reflected continued strong execution and progress on our objective to deliver superior shareholder value'. 'Over the last three years, Chevron has returned more than $78 billion of cash to shareholders,' he added. 'Despite changing market conditions, our resilient portfolio, strong balance sheet, and consistent focus on capital and cost discipline position us to deliver industry-leading free cash flow growth by 2026,' he continued. To contact the author, email More From The Leading Energy Platform: North Atlantic in Talks with ExxonMobil to Buy French Refinery Complex Standard Chartered Expects OPEC+ 8 to 'Continue with Accelerated Unwinding' Equinor Offers $1.75B Bonds GasBuddy Head Predicts 'Relatively Stable Stretch for Gas Prices' >> Find the latest oil and gas jobs on <<
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22-05-2025
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Texas Industry Groups Look at April Upstream Employment
This article was first published on Rigzone here According to the Texas Independent Producers and Royalty Owners Association's (TIPRO) analysis, direct Texas upstream employment for April totaled 206,000. That's what TIPRO said in a statement sent to Rigzone on Friday, which cited the latest Current Employment Statistics (CES) report from the U.S. Bureau of Labor Statistics (BLS). In the statement, TIPRO highlighted that the April figure was 'an increase of 1,700 industry positions from March employment numbers, subject to revisions'. TIPRO also noted in the statement that this represented an increase of 900 jobs in the services sector and 800 jobs in oil and gas extraction. 'TIPRO's new workforce data still indicated strong job postings for the Texas oil and natural gas industry, although April data showed a decline in overall unique postings compared to the previous month, despite an increase in new postings,' TIPRO noted in its statement. 'There were 8,826 active unique jobs postings for the Texas oil and natural gas industry last month, compared to 10,120 postings in March, and 3,919 new postings, compared to 3,458 in the previous month,' TIPRO added. 'In comparison, the state of California had 2,611 unique job postings in April, followed by New York (2,392), Florida (1,744) and Colorado (1,290),' it continued. In the statement, TIPRO reported a total of 49,826 unique job postings nationwide in April within the oil and natural gas sector, 'including 22,744 new postings in April'. The industry body highlighted in its statement that, among the 19 specific industry sectors it uses to define the Texas oil and natural gas industry, Gasoline Stations with Convenience Stores 'led in the ranking for unique job listings in April with 2,158 postings'. This was followed by Support Activities for Oil and Gas Operations, with 2,015 postings, and Petroleum Refineries, with 775 postings, TIPRO pointed out. TIPRO revealed in the statement that the leading three cities by total unique oil and natural gas job postings were Houston, with 2,021, Midland, with 592, and Odessa, with 411. The top three companies ranked by unique job postings in April were Love's, with 665, Cefco, with 655, and John Wood Group, with 280, the industry body outlined in the statement. TIPRO noted in its statement that, of the top ten companies listed by unique job postings in April, five companies were in the services sector, two were in the gasoline stations with convenience stores category, two were midstream companies, and one was an oil and gas operator. Top posted industry occupations for April included retail salespersons, with 411 postings, first-line supervisors of retail sales workers, with 391 postings, and heavy and tractor-trailer truck drivers, with 360 postings, according to TIPRO, which highlighted that the top posted job titles for April included customer service representatives, with 155 postings, store managers, with 141 postings, and maintenance technicians, with 112 postings. Top qualifications for unique job postings included a valid driver's license, with 1,574 postings, a CDL class a license, with 300 postings, and hazmat endorsement, with 166 postings, TIPRO pointed out in the statement. According to TIPRO, 42 percent of unique job postings had no education requirement listed, 30 percent required a bachelor's degree, and 29 percent required a high school diploma or GED. The industry body noted in the statement that there were 1,733 advertised salary observations, which it pointed out was 20 percent of the 8,826 matching postings, with a median salary of $58,200. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> 'The highest percentage of advertised salaries (26 percent) were in the $90,000 to $500,000 range,' TIPRO said. In its statement, TIPRO also highlighted 'significant tax contributions' by the state's oil and gas industry that the industry body said 'continue to offer essential support of government coffers and provide funding for public services'. 'In April, Texas energy producers paid $436 million in oil production taxes, according to data published by the Texas comptroller's office, up from March 2025,' TIPRO highlighted in the statement. Producers last month also paid $233 million to the state in natural gas production taxes, up 37 percent from a year ago, TIPRO noted in the statement. A statement sent to Rigzone by the Texas Oil & Gas Association (TXOGA) on Friday stated that new data from the Texas Workforce Commission indicate that upstream oil and natural gas employment climbed by 1,700 in April compared to March. 'This follows strong hiring growth that took place in January and February of this year, during which upstream jobs grew by 2,600 and 1,600, respectively, with March having been down by 800,' TXOGA noted in that statement. 'At 206,000 upstream jobs, compared to the same month in the prior year, April 2025 jobs were up by 2,100, or one percent,' the industry body added. 'Since the Covid-low point of September of 2020, the industry has added 49,000 Texas upstream jobs, a 31.2 percent increase, averaging growth of 891 jobs a month,' TXOGA went on to state. 'During the same time, months with upstream oil and gas employment increases have outnumbered those with decrease by 39 to 15', the industry body continued. In its statement, TXOGA noted that these jobs pay among the highest wages in Texas, and pointed out that employers in oil and natural gas paid an average salary of approximately $128,000 in 2024. TXOGA highlighted in its statement that the upstream sector involves oil and natural gas extraction and excludes other industry sectors such as refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities, which it said support hundreds of thousands of additional jobs across Texas. 'The employment shown also includes Support Activities for Mining, which is mostly oil and gas-related but also includes some small amount of other types of mining,' TXOGA said in its statement. In the statement, TXOGA President Todd Staples said, 'these positive job numbers are a tremendous benefit to the families who are supported by this industry and are important for the communities in which they occur'. TIPRO describes itself as a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. TXOGA describes itself as the oldest and largest oil and gas trade association in Texas representing every facet of the industry. It was founded in 1919. To contact the author, email More From The Leading Energy Platform: Thousands of Business Figures Call for Immediate End to UK EPL European Commission Awards $1B in Green Hydrogen Subsidies Ithaca Boosts Stake in 'Largest UK Continental Shelf Gas Field' Oversold NatGas Trampolines Higher, EBW Analyst Says >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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20-05-2025
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OPEC+ Did Not Lift Production to Kill the Oil Price, SEB Says
This article was first published on Rigzone here OPEC+ did not lift production by 400,000 barrels per day in May and June to kill the oil price and to go full throttle on an oil price war. That's what Bjarne Schieldrop, Chief Commodities Analyst at Skandinaviska Enskilda Banken AB (SEB), said in an oil report sent to Rigzone by the SEB team on Friday, adding that the group did it to meet added demand for oil in the Middle East, 'which rise[s] significantly in summertime due to air conditioning and religious pilgrimage to Saudi Arabia'. 'The plan of lifting production by 2.1 million barrels per day by December 2026 has not at all been abandoned,' Hvalbye stated in the report. 'It is still a monthly decision of what to do. Lift production or even reduce production if needed,' he added. 'The global oil market is still tight as of today [Friday] with consumers asking for more than what producers are giving them. Thus, the front-end backwardation,' he continued. 'While there is no sign of a blasting price war emerging between OPEC+ and U.S. shale oil producers, it is still clear that U.S. shale oil producers will have to shed the needed volume to make room for more oil from OPEC+ to December 2026 to the magnitude of 2.1 million barrels per day added supply from the group,' Hvalbye went on to state. In a BMI report sent to Rigzone by the Fitch Group on Friday, BMI analysts said, 'with OPEC+ continuing to increase production at faster pace than earlier guidance the risk of oversupply remains'. The analysts noted in that report that they continue to hold to their current forecast for Brent crude to average $68 per barrel in 2025. In a BofA Global Research report sent to Rigzone on Friday, BofA analysts stated that successive months of accelerated OPEC+ oil production will continue to push demand/supply out of balance. The analysts outlined in the report that, in their view, this 'will push Brent to average <$60 per barrel across 2-3Q25'. Rigzone has contacted OPEC for comment on the SEB, BMI, and BofA Global Research reports. Rigzone has also contacted the American Petroleum Institute (API) and the U.S. Department of Energy (DOE) for comment on the SEB report. At the time of writing, none of the above have responded to Rigzone. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> A release posted on OPEC's website on May 3 announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman 'will implement a production adjustment of 411,000 barrels per day in June 2025 from [the] May 2025 required production level'. 'The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023 … met virtually on 3 May 2025, to review global market conditions and outlook,' that release noted. 'In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411,000 barrels per day in June 2025 from May 2025 required production level,' it added. The release highlighted that 'this is equivalent to three monthly increments' and pointed out that 'the gradual increases may be paused or reversed subject to evolving market conditions'. A release posted on OPEC's website on April 3 announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman 'will implement a production adjustment of 411,000 barrels per day, equivalent to three monthly increments, in May 2025,'. The statement posted on OPEC's site on May 3 revealed that the eight countries will meet on June 1 to decide on July production levels. To contact the author, email More From The Leading Energy Platform: Texas RRC Tightens Permitting Rules for Permian Disposal Wells ADNOC Gas to Join MSCI Emerging Markets Index USA Energy Consumption Will Grow in 2025 Analyst Says Trump Essentially Walked Away from Russia-Ukraine War >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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20-05-2025
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Africa Oil Corp Announces New Brand Identity
This article was first published on Rigzone here In a release posted on its website, Africa Oil Corp. announced a new brand identity with a change of name to Meren Energy Inc. The company noted in the release that its rebranding follows the recent completion of the 'transformative Prime consolidation, doubling reserves and production in high quality offshore assets that benefit from low lifting costs, premium Brent pricing and a favorable fiscal regime'. The business said its common shares will trade under the new symbol 'MER' on the TSX and Nasdaq OMX Stockholm. It added in the release that there is no change in the capitalization of the company pursuant to the change of name and new trading symbols. In connection with its name change, the company also announced the launch of a new website, which has gone live today, 'to coincide with the trading under the new symbols'. The name Meren is derived from an old nautical term representing the mooring of a vessel as it docks, the company stated in the release. 'Inspired by the maritime legends that set sail in pursuit of new worlds, the name mirrors the company's stability anchored by a diverse portfolio, strong cash flow profile and proven ability to work side by side with industry leaders on world-class assets,' it added. In the release, the company noted that Meren's 'key strategic objectives will remain to - drive long-term value through its existing portfolio of world-class assets and deliver compelling shareholder returns; continue growing into a leading independent E&P company that is a trusted and prominent industry partner, recognized for the quality of its assets, balance sheet strength, and disciplined capital allocation; and judiciously consider strategic acquisition of production assets within target markets, with strict adherence to strategic, financial and operational criteria'. President and Chief Executive Officer Roger Tucker said in the release, 'the recent completion of the Prime consolidation felt like the natural catalyst to rebrand the company given the transformational impact of that transaction'. 'Over the last couple of years, we have worked diligently to enhance our investment proposition by simplifying the structure of the business and gaining more direct interests in our large-scale and high-netback assets in deepwater Nigeria,' he added. 'The business model has also evolved considerably over the past few years; moving away from being exploration led to being a full-cycle E&P underpinned by strong cash flow generation that supports our commitment to meaningful shareholder returns,' he continued. In a release posted on its site on March 20, Africa Oil Corp. announced the completion of the amalgamation to consolidate all of the Prime Oil & Gas Coöperatief U.A shareholding in Africa Oil. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> 'There is compelling strategic rationale for the consolidation and we believe that the quality and materiality of the assets within our diversified portfolio, our newly combined balance sheet, the strength of the cash flow profile and an attractive double-digit dividend yield all help emphasize a superior investment proposition for investors,' Tucker said in that release. Africa Oil Chairman Huw Jenkins said in that release, 'on behalf of the board I congratulate the teams at Africa Oil, Prime and BTG Pactual in closing this deal considerably ahead of the original timeline'. 'The enlarged Africa Oil is uniquely well-positioned to drive long-term value through its existing portfolio of world-class assets as well as by leveraging its strong balance sheet to consider strategically complementary acquisitions in our target markets,' he added. 'The company has ambitious growth targets and the vision is to continue growing into a leading full-cycle E&P, establishing it as a trusted and prominent industry partner,' he continued. In a release posted on its site on June 24, 2024, Africa Oil Corp. announced that it had reached an agreement with BTG Pactual Oil & Gas S.a.r.l. to consolidate their respective shareholdings in Prime Oil & Gas Coöperatief U.A. That release noted that Africa Oil had entered into a definitive agreement with BTG Oil & Gas and BTG Pactual Holding S.a.r.l. in relation to their joint 50:50 ownership of Prime. 'Under the Amalgamation Agreement, BTG Holding will be amalgamated under Canadian corporate law with a newly created subsidiary of Africa Oil, with BTG Oil & Gas receiving newly issued common shares in Africa Oil as part of the amalgamation,' that release stated. 'On completion of the Proposed Reorganization, BTG Oil & Gas is expected to hold approximately 35 percent of the outstanding share capital of the enlarged Africa Oil (on a partially diluted basis, excluding certain performance share units with a long vesting horizon), based on the current number of Africa Oil shares,' that release added. Africa Oil Corp.'s March 20 statement highlighted the issuance of 239,828,655 newly issued common shares in Africa Oil to BTG Pactual Oil & Gas S.a.r.l., 'representing approximately 35.5 percent of the outstanding share capital of the company'. To contact the author, email More From The Leading Energy Platform: OPEC+ Did Not Lift Production to Kill the Oil Price, SEB Says Strathcona Bares Unsolicited Bid for MEG, Sells Montney Assets Venture Global Exported Record LNG in Q1 North America Adds Rigs for First Time in Months >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
