Signing of MOU for the Bioko Oil Terminal Project
09 Nov 2015
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: SCL AIM Share Code: SAC
(“SacOil” or “the Company”)
SACOIL ANNOUNCES SIGNING OF MEMORANDUM OF UNDERSTANDING FOR THE BIOKO OIL TERMINAL PROJECT IN EQUATORIAL GUINEA
SacOil Holdings Limited announces that today, it signed a Memorandum of Understanding (“MOU”) with the Ministry of Mines, Industries and Energy of Equatorial Guinea, Taleveras Exploration and Production DMCC, Gunvor Group and the Strategic Fuel Fund Association (“the Parties”) to conduct a detailed evaluation for the development of the Bioko Oil Terminal tank farm in Equatorial Guinea (“the Project”). The effective date of the MOU is 30 October 2015.
Taleveras Exploration and Production DMCC (“Taleveras”) is a company incorporated under the laws of the United Arab Emirates which offers a wide range of integrated and strategic solutions in fields such as energy, power, construction, and logistics on a global scale. Its energy activities are centered on the physical sourcing and marketing of oil on a worldwide scale. Taleveras also pursues upstream activities with a major focus on acquiring drilling rights for viable, proven oil reserves.
More recently, it became directly involved in power distribution as a result of its leading role in the 4 Power Consortium, which now controls 60% of the power distribution network in the Niger Delta region of Nigeria. Taleveras expanded its activities in the Power sector by successfully winning an acquisition bid for the 900mw Afam Power plant in Rivers State, Nigeria.
Gunvor Group (“Gunvor”) is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy, metals and bulk materials from where they are sourced and stored to where they are demanded most. Its trading activities include: Crude Oil, with suppliers in more than 35 countries around the globe; Refined petroleum products, including gasoil, fuel oil, gasoline, naphtha and LPG; also expanded into natural gas, liquefied natural gas (LNG), biofuels, power and carbon emissions; metals and bulk materials (including coal) through off-takes, purchases and marketing arrangements with producers worldwide. Gunvor is incorporated under the laws of Cyprus.
The Strategic Fuel Fund Association (“the Association”), incorporated in South Africa, is a wholly owned subsidiary of the Central Energy Fund. Its core activity is trading crude oil. The Association also provides several ancillary services including the coordination and management of the transportation and distribution of crude oil, crude oil storage facilities, environmental protection against oil pollution and risk management.
The Bioko Oil Terminal will be a large oil and petroleum products storage facility, and its development is spearheaded by the Ministry of Mines, Industry and Energy of Equatorial Guinea. Through the project, the Government aims to establish Equatorial Guinea as the premier storage location in West and Central Africa, and a major transit point for global oil and gas deliveries.
This MOU is intended to provide the general principles and key terms for cooperation between the Parties that are necessary to support the advancement of the Project. During the evaluation the most viable configuration for the Project and any required fiscal and regulatory terms required to ensure commercial, technical, economic and financial viability of the Project will be determined.
The MOU contemplates that Parties shall execute a Joint Development Agreement (“JDA”) governing the execution of the next phase, on such terms and conditions customary for a project of this nature and extent, and setting out each Party’s equity interest in the Project. The JDA shall be executed once the pre-feasibility studies have been completed.
“SacOil welcomes this opportunity to work with a strategic partner such as the Ministry of Mines, Industries and Energy to add needed oil and petroleum products storage capacity in West and Central Africa. The project fits well with the Company’s overall strategy of diversifying the business into midstream and downstream activities.” said Dr Thabo Kgogo, chief executive officer.
9 November 2015
PSG Capital Proprietary Limited
For further information please contact:
SacOil Holdings Limited
Damain Matroos +27 (0)10 591 2260
finnCap Limited (Nominated Adviser and broker)
Christopher Raggett and James Thompson +44 (0) 20 72200 500
FirstEnergy Capital (Financial Adviser and Joint Broker UK)
Hugh Sanderson / David van Erp +44 (0) 20 74480 200
SacOil is a South African based independent African oil and gas company and its shares are dual listed on the JSE and AIM. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade. The Group is committed to investing in the potential of Africa’s indigenous assets and presents an excellent investment vehicle for both private and institutional investors whose interests are aligned with the Group’s vision and mission. The Group has therefore expanded its focus to include development and production activities, energy infrastructure and selected downstream opportunities that will meet the demand for products to support the proliferating needs of the continent.