afrol News, 12 August - The Vitol Group, has announced that it has entered into a farm-in agreement with Bowleven, the African focused oil and gas company, in respect of the Etinde Permit (Etinde, Cameroon). The proposed farm-in is however conditional upon normal regulatory approval by the Cameroon Government.

The company said in a statement today that the transaction has two parts. “Firstly, the acquisition by VEP of an initial 25 percent interest in Etinde, in return for funding a US $100 million gross work programme. Secondly, an option to acquire a further 25 percent interest, in return for funding an additional US $100 million gross work programme and paying US $25 million in cash to the group to progress Etinde activities,” explained the company statement, further adding that these investments will facilitate a significant exploration and appraisal programme and, if successful, move the assets towards development.

In addition, the statement said to its obvious marketing strengths, the Vitol Group will bring considerable development and project finance experience to the project for the mutual benefit of the joint venture.

The Etinde Permit area comprises three shallow water blocks in offshore Cameroon and covers portions of the Rio Del Rey and Douala Basins, both of which have proven petroleum systems and discovered hydrocarbon resources. The Etinde PSC was signed on 22 December 2008 and includes a three year exploration permit.

By staff writer

© afrol News

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