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Deepwater Tano Cape Three Points Block Development to benefit from AFC's investment.
Aker Capital and The Resource Group TRG AS (TRG) have agreed to sell their shares in Aker Energy AS (Aker Energy) to AFC Equity Investment, a company owned by Africa Finance Corporation (AFC). Aker holds a 50.79% stake in Aker Energy, while TRG holds the remaining 49.21%. The management team of Aker Energy will remain unchanged, and they will continue to work towards submitting the Plan of Development (PoD) for the Pecan field to Ghanaian authorities in April 2023.
Following the transaction, AFC will become the sole shareholder of Aker Energy and will own a 50% stake in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana. The block comprises discoveries of 450-550 million barrels of oil equivalents, including the Pecan field. AFC has previously invested $200 million in senior secured bonds in the DWT/CTP block development, and AFC's CEO currently serves on the Aker Energy board.
Øyvind Eriksen, President and CEO of Aker ASA, commented on the transaction, saying, "Aker still believes in the resource potential of the DWT/CTP block in Ghana. AFC is already invested in this field development and is well-positioned to continue this development. In line with Aker's capital allocation priorities, we have thus made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration. This way, we share the risk and reward of this future development."
The share purchase by AFC is based on an earn-out model tied to potential future sales or production proceeds from the Pecan project. Aker will regularly assess the value of the potential earn-out consideration compared to its current book value, which is part of Aker's Net Asset Value reporting.
AFC is a pan-African multilateral development finance institution with experience in addressing Africa's infrastructure deficit. The corporation has a $10.5 billion portfolio of loans and other investments across six sectors, with 40 member countries. The Republic of Ghana became an AFC sovereign shareholder in 2018, having acceded to membership in 2011. AFC has invested in several projects in Ghana across various sectors over the last 15 years, both as equity and debt providers.
Samaila Zubairu, President and CEO of AFC, said, "AFC reaffirms its commitment to catalyzing economic growth and development in Africa. AFC will continue to ensure that Africa's natural resources, including its vast oil and gas reserves, are developed sustainably within the global framework on energy transition and the UN Sustainable Development Goals." He added that the DWT/CTP Project has the potential to create jobs, increase government revenues, and spur development in Ghana.