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Announces Signing of Memorandum of Understanding for The Bioko Oil Terminal Project in Equatorial Guinea
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: SCL AIM Share Code: SAC
ISIN: ZAE000127460
(“SacOil” or “the Company”)
SACOIL ANNOUNCES SIGNING OF MEMORANDUM OF UNDERSTANDING FOR
THE BIOKO OIL TERMINAL PROJECT IN EQUATORIAL GUINEA
SacOil Holdings Limited announces that today, it signed a
Memorandum of Understanding (“MOU”) with the Ministry of
Mines, Industries and Energy of Equatorial Guinea, Taleveras
Exploration and Production DMCC, Gunvor Group and the
Strategic Fuel Fund Association (“the Parties”) to conduct a
detailed evaluation for the development of the Bioko Oil
Terminal tank farm in Equatorial Guinea (“the Project”). The
effective date of the MOU is 30 October 2015.
Taleveras Exploration and Production DMCC (“Taleveras”) is a
company incorporated under the laws of the United Arab
Emirates which offers a wide range of integrated and strategic
solutions in fields such as energy, power, construction, and
logistics on a global scale. Its energy activities are
centered on the physical sourcing and marketing of oil on a
worldwide scale. Taleveras also pursues upstream activities
with a major focus on acquiring drilling rights for viable,
proven oil reserves. More recently, it became directly involved
in power distribution as a result of its leading role in the
4 Power Consortium, which now controls 60% of the power
distribution network in the Niger Delta region of Nigeria.
Taleveras expanded its activities in the Power sector by
successfully winning an acquisition bid for the 900mw Afam Power
plant in Rivers State, Nigeria.
Gunvor Group (“Gunvor”) is one of the world’s largest
independent commodities trading houses by turnover, creating
logistics solutions that safely and efficiently move physical
energy, metals and bulk materials from where they are sourced
and stored to where they are demanded most. Its trading
activities include: Crude Oil, with suppliers in more than 35
countries around the globe; Refined petroleum products,
including gasoil, fuel oil, gasoline, naphtha and LPG; also
expanded into natural gas, liquefied natural gas (LNG),
biofuels, power and carbon emissions; Metals and bulk
materials (including coal) through off-takes, purchases and
marketing arrangements with producers worldwide. Gunvor is
incorporated under the laws of Cyprus.
The Strategic Fuel Fund Association (“the Association”),
incorporated in South Africa, is a wholly owned subsidiary of
the Central Energy Fund. Its core activity is trading crude
oil. The Association also provides several ancillary services
including the coordination and management of the
transportation and distribution of crude oil, crude oil
storage facilities, environmental protection against oil
pollution and risk management.
The Bioko Oil Terminal will be a large oil and petroleum
products storage facility, and its development is spearheaded
by the Ministry of Mines, Industry and Energy of Equatorial
Guinea. Through the project, the Government aims to establish
Equatorial Guinea as the premier storage location in West and
Central Africa, and a major transit point for global oil and
gas deliveries.
This MOU is intended to provide the general principles and key
terms for cooperation between the Parties that are necessary
to support the advancement of the Project. During the
evaluation the most viable configuration for the Project and
any required fiscal and regulatory terms required to ensure
commercial, technical, economic and financial viability of the
Project will be determined.
The MOU contemplates that Parties shall execute a Joint
Development Agreement (“JDA”) governing the execution of the
next phase, on such terms and conditions customary for a
project of this nature and extent, and setting out each
Party’s equity interest in the Project. The JDA shall be
executed once the pre-feasibility studies have been completed.
“SacOil welcomes this opportunity to work with a strategic
partner such as the Ministry of Mines, Industries and Energy
to add needed oil and petroleum products storage capacity in
West and Central Africa. The project fits well with the
Company’s overall strategy of diversifying the business into
midstream and downstream activities.” said Dr Thabo Kgogo,
chief executive officer.
Johannesburg
9 November 2015
JSE Sponsor
PSG Capital Proprietary Limited
For further information please contact:
SacOil Holdings Limited +27 (0)10 591 2260
Damain Matroos
finnCap Limited (Nominated Adviser and +44 (0) 20 72200 500
broker)
Christopher Raggett and James Thompson
FirstEnergy Capital (Financial Adviser +44 (0) 20 74480 200
and Joint Broker UK)
Hugh Sanderson / David van Erp
About SacOil
SacOil is a South African based independent African oil and
gas company and its shares are dual listed on the JSE and AIM.
Our focus as a Group is on delivering energy for the African
continent by using Africa’s own resources to meet the
significant growth in demand expected over the next decade.
The Group is committed to investing in the potential of
Africa’s indigenous assets and presents an excellent
investment vehicle for both private and institutional
investors whose interests are aligned with the Group’s vision
and mission. The Group has therefore expanded its focus to
include development and production activities, energy
infrastructure and selected downstream opportunities that will
meet the demand for products to support the proliferating
needs of the continent.
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