Africa Oil Corp has received approval from the Kenyan government for a farm-out deal with Maersk
The deal concerns Kenya's blocks 10BB, 13T and 10BA. Once the deal is completed, Africa Oil and Maersk will each hold a 25 per cent stake in the three block. The remaining 50 per cent interest will be held by Tullow. Additionally, Africa Oil has interests in Kenya Block 9, Kenya Block 12A, Ethiopia Rift Basin and Ethiopia Rift Basin and Ethiopia South Omo.
"We are very pleased to have received approval from the government of Kenya," said Keith Hill, Africa Oil's president and CEO. "We feel Maersk will be an excellent partner in terms of technical and financial strength and experience, critical to moving the development project forward."
He added that the deal puts Africa Oil in an "enviable position" as the company will not need any additional equity funding prior to first oil, allowing them to "weather the current difficult oil price environment should it continue into 2016."