BLP advises Panoro on the sale of a 25% working interest in the Dussafu Production Sharing Contract
International law firm Berwin Leighton Paisner (BLP) has advised Panoro Energy ASA on the sale by its Gabon subsidiary of a 25% working interest in the Dussafu Production Sharing Contract offshore Gabon to BW Energy Gabon for a total value of US$12 million plus a non-recourse loan of up to $12.5m in order to fund Panoro’s share of expenditures up to first oil.
Panoro, listed on the Oslo Stock Exchange, holds high quality production, exploration and development assets in West Africa.
As a result of the transaction, PPG now holds an 8.333% working interest in the Dussafu production sharing contract and will have the benefit of a non-recourse loan facility from BW Energy Gabon Pte. Ltd (BWEG) of up to US$12.5 million to finance PPG’s share of development costs to first oil production in relation to the concession.
Pan-Petroleum Gabon B.V. (PPG), has received cash consideration of US$11 million (subject to certain agreed adjustments) with deferred consideration of a further US$1 million to be paid no later than 30 December 2017.
Adam Dann, Head of Energy & Natural Resources at BLP, commented “We are delighted to have advised on this strategically significant deal, deepening our relationship with Panoro and drawing on the experience of our market-leading oil and gas practice.”
John Hamilton, CEO of Panoro, said, “We are excited about our new partnership with BW Offshore to develop the Dussafu oilfield. The closing of this transaction helps strengthen our balance sheet, while retaining a fully financed interest in Dussafu”.
The BLP team was led by Adam Dann (Head of Energy & Natural Resources) with support from associates Helen Miller, Tim Sumner and David Cook (Projects, Energy & Infrastructure Finance team).