Edinburgh-based Bowleven has terminated its strategic alliance agreement with Petrofac over the sell-off of its Cameroon shares.
The Africa-focused explorer signed a farm-out agreement in June this year with Lukoil and New Age for a 50% interest in its Etinde Permit, off the coast of Cameroon.
Lukoil and New Age are set to pay Bowleven $170million on completion of the deal, a $40million deferred cash payment due at the project’s final investment decision and cover $40million in costs for two appraisal wells.
The completion of the deal is subject to Bowleven terminating its agreement with Petrofac, signed in November 2012.
The facility services giant then invested $500million in Bowleven’s project to develop gas reserves off Cameroon, in return for a cut of future production revenues.
Under the new arrangement, Bowleven will pay Patrofac $9million upon completion of the farm-out as a final settlement between the two parties.
“We have worked closely with Petrofac over the last two years and we appreciate their co-operation in reaching a mutually acceptable termination agreement,” said Kevin Hart, chief executive of Bowleven.