The Eni-operated licence covers four blocks, including the giant Nene field which came onstream in 2015.
The licence produces 30 000 bpd of liquids, while 60 million cubic feet per day of gas is sold to the domestic power market. Production will peak at over 100 000 bpd by 2025, with a floating liquefied natural gas development also in the pipeline.
Jean-Baptiste Bouzard, senior research analyst at Wood Mackenzie, said: “The deal consideration is US$800 million cash. This represents a 36% discount to our US$1.26 billion valuation (NPV 10, January 2019). This can be explained by NewAge’s well-known desire to sell and the development costs associated with complex reservoirs.
“The transaction adds production for the first time to Lukoil’s West African portfolio, and fits with the Russian company’s aims of developing its offshore expertise and grow its presence outside its Russian stronghold.
“For NewAge, the sale will free up resources to focus on Etinde in Cameroon, and replenish its exploration portfolio.”
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/10062019/wood-mackenzie-comments-on-lukoils-marine-xii-move/