Maurel & Prom enters into Angolan market

The SPA reinforces M&P's position in the Congo basin, its historic region of expertise.

Maurel & Prom announced the signature of a sale and purchase agreement for the acquisition of the 20% working interest owned by Angola Japan Oil Co., a majority owned subsidiary of Mitsubishi Corporation, in two blocks offshore in Angola.

Blocks 3/05 and 3/05A are located in shallow water (c.100m depth) in the Congo Basin, a region where M&P has extensive current and historical presence with long track record of production and upside potential. The two blocks are located c.30km from the Angolan shore and operated by national oil company Sonangol Pesquisa e Produção. The blocks are contiguous and share processing and export facilities.

The transaction amounts to $80 million, funded from M&P's existing cash resources, with an additional contingent consideration of up to $25 million subject to oil price performance and resources development. The closing of the acquisition remains subject to the obtainment of the required government approvals and waiver of applicable pre-emption rights.

M&P expects with this move future cooperation opportunities in the oil industry in the country. "We are very happy to start a new chapter of M&P's history in Angola, a major oil and gas jurisdiction in Africa with exciting opportunities ahead as the local oil industry is undergoing a major regulatory and institutional reshaping", declared Chief Executive Officer of Maurel & Prom, Michel Hochard.