Aker Capital AS, which is 100% owned by Aker ASA, and The Resource Group TRG AS, TRG, have agreed to sell their shares in Aker Energy AS to AFC Equity Investment Ltd, which is held by Africa Finance Corporation, AFC.
Aker now owns 50.79 percent of Aker Energy, while TRG owns 49.21 percent. The Aker Energy management team will continue in place and will seek to submit the Plan of Development (“PoD”) for the Pecan field to Ghanaian authorities in April 2023.
AFC will become the sole shareholder of Aker Energy, and thus the 50 percent owner of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, which includes discoveries of 450-550 million barrels of oil equivalent, including the Pecan field, as a result of the agreement. Africa Finance Corporation previously invested USD 200 million in senior secured bonds towards the construction of the DWT/CTP block, and AFC’s CEO currently serves on the Aker Energy board of directors.
“Aker continues to believe in the resource potential of Ghana’s DWT/CTP block.” AFC has already invested in the growth of this field and is well-positioned to continue it. In accordance with Aker’s capital allocation strategies, we have made the strategic decision to sell our ownership in the Ghana assets using an earn-out mechanism as a consideration. “This way, we share the risk and reward of this future development,” stated Aker ASA President and CEO yvind Eriksen. “The sale to a reputable African institution, such as the AFC, was deemed the best way forward to ensure the development of the Pecan field and the entire DWT/CTP block.” As a result, we are overjoyed to have reached this arrangement with AFC.”
AFC’s share purchase is predicated on an earn-out arrangement based on potential future sales and/or production earnings from the Pecan project. Aker will analyze the value of the prospective earn-out consideration in relation to its current book value on an ongoing basis, as part of Aker’s Net Asset Value reporting.
AFC is a pan-African multilateral development finance institution with a track record of providing pragmatic solutions to Africa’s infrastructure deficit, with a USD 10.5 billion portfolio of loans and other investments across six sectors and 40 member countries joining the Corporation. The Republic of Ghana joined the AFC in 2011 and became a sovereign shareholder in 2018. Over the previous 15 years, AFC has invested in multiple projects in Ghana across several real industries, both as equity and finance providers.
“The African Development Bank 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 in a sustainable manner within the global framework of energy transition and the UN Sustainable Development Goals,” stated AFC President and CEO Samaila Zubairu. “The DWT/CTP Project, which aims to develop Ghana’s proven resources, has the potential to create jobs, increase government revenue, and spur national development.” Our ongoing collaboration with Aker companies for technical development support will ensure that the PoD is presented on schedule and within the limits agreed upon with the Government of Ghana. This is a big step toward meeting the project’s objectives and adding significant value to the Ghanaian economy.”