Ghana: Africa Finance Corporation acquires energy company
Aker ASA and The Resource Group have agreed to sell their respective stakes in Aker Energy to AFC Equity Investment Ltd, a subsidiary of the Africa Finance Corporation (AFC). Aker currently owns 50.79% of Aker Energy, while The Resource Group holds 49.21%. Following the transaction, the management team of Aker Energy will remain the same, with plans to submit the plan of development for the Pecan field to Ghanaian authorities in April 2023.
As a result of this deal, AFC will become the sole shareholder of Aker Energy and will own 50% of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana. This block contains 450-550 million barrels of oil equivalents, including the Pecan field. AFC has previously invested $200 million in senior secured bonds for the DWT/CTP block development, and AFC’s CEO is a current member of the Aker Energy board.
Aker ASA’s president and CEO, Øyvind Eriksen, stated, ”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 made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration.”
The agreement involves an earn-out model based on potential future sales and/or production proceeds from the Pecan project. Aker will continually 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.