AKER Capital and The Resource Group TRG have agreed to sell their shares in Aker Energy to AFC Equity Investment, a company owned by Africa Finance Corporation (AFC). As a result of the deal, AFC will become the sole shareholder of Aker Energy, and the 50% owner of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, which includes oil and gas discoveries of 450-550 million barrels of oil equivalents, including the Pecan field.
Aker ASA announced the transaction on April 14, stating that the move was in line with their capital allocation priorities. The company’s President and CEO, Øyvind Eriksen, said that Aker still believes in the resource potential of the DWT/CTP block in Ghana, but made a strategic decision to sell their stake in the Ghana assets with an earn-out model as consideration.
‘Aker still believes in the resource potential of the DWT/CTP block in Ghana. AFC is already invested in this field development and is well-positioned to continue this development. In line with Aker’s capital allocation priorities, we have thus made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration. This way we share the risk and reward of this future development,’ he said.
AFC previously invested $200 million in senior secured bonds in the DWT/CTP block development and its CEO currently serves on the Aker Energy board. The consideration for the share purchase by AFC is an earn-out model based on potential future sales and/or production proceeds from Pecan.
The company’s management team will remain unchanged and will work towards the submission of the Plan of Development (PoD) for the Pecan field to Ghanaian authorities this month. AFC will collaborate with Aker entities to provide technical support for the development of the project.
The President and CEO of AFC, Samaila Zubairu, said that the DWT/CTP project has the potential to create jobs, increase government revenues, and spur development in the country. Zubairu added that their collaboration with Aker entities will ensure that the PoD is submitted on time and in line with the framework agreed with the Government of Ghana.
‘Our continuing collaboration with Aker entities for technical support to the development will ensure that the PoD is submitted on time and in line with the framework agreed with the Government of Ghana. This is a positive step toward achieving the project’s goals and significantly contributing value to the Ghanaian economy,’ he said.