Africa Oil has entered into an agreement with Petrobras to acquire a 50% interest Petrobras Oil & Gas BV (POGBV) in October 2019. This follows Vitol and Delonex decisions to withdraw from the previously announced purchase of 50% of the share capital of POGBV. Consequently, Africa Oil will be the sole acquirer of the 50% interest in POGBV with Vitol and Delonex declining. The primary assets of POGBV are an 8% interest in Chevron-operated Oil Mining Lease (OML) 127, which contains the Agbami field, and a 16% interest in Total-operated OML 130 including the Akpo and Egina fields.
Africa Oil has also agreed to an approved term sheet with BTG Pactual for a bridge loan of up to $250 million. The loan and available cash provide sufficient funds to cover its POGBV deal and 2020 budget. The deal closed in January 2020 with a total cash payment of $519.5 million and a deferred payment of $123 million, dependent on the date and ultimate OML 127 tract participation in the Agbami field. Standard Bank acted as a financial advisor to Africa Oil, and PillarFour Capital provided a fairness opinion.