Sasol Gabon S.A. (Sasol) and VAALCO Gabon S.A. (VAALCO) have signed a Sale and Purchase Agreement (SPA) that will allow VAALCO acquire the 27.8% working interest of Sasol in the Etame Marine block offshore Gabon.
The deal will also see VAALCO acquire Sasol’s 40% non-operated participating interest in Block DE-8 offshore Gabon. Etame is a producing asset with proven reserves, while DE-8 is an exploration permit.
The effective date of the transaction is July 1st 2020 for a total cash consideration for both assets of $44 million, subject to customary financial adjustments including cash flows attributable to the period from the effective date until the closing date.
The SPA includes receipt of all the necessary written consents, approvals or waivers, and provides certain contingent payments of up to $6 million.
The Chief Financial Officer of Sasol Limited, Paul Victor said, “This transaction marks another step towards Future Sasol. With our strategic repositioning, we made the decision to exit all upstream oil-based growth opportunities in West Africa, as we prioritize growth in specialty chemicals globally and focus on our Southern African energy business’ transition. We are pleased that VAALCO, our long-standing partner, has agreed to expand its interest and continue to nurture these assets.”