Gasol inks AfGen Option Agreement

Gasol acquires shares in Af Power Gen LtdOil firm Gasol has entered into an agreement that will see it obtain the total issued share capital of African Power Generation Ltd. (Image source: Trevor Harris/ Wikimedia commons)Africa-focussed oil firm Gasol will purchase the entire issued share capital of African Power Generation Ltd (AfGen) from African Development Corporation Ltd after entering an Option Agreement

The Option Agreement, which is at no cost to Gasol, has been signed and will be valid over the next 12 months.

Gasol chief operating officer Alan Buxton said, “Today's agreement will potentially enable us to generate substantial future revenues that will support Gasol's further corporate development.”

The agreement is part of Gasol’s larger initiative to develop gas markets in West Africa through LNG import projects. Signing the agreement has allowed Gasol to access and utilise existing pipelines, rather than having to start its planned projects from scratch.

In line with the Option Agreement, Gasol will be eligible to lend up to US$500,000 in any calendar month or an overall total of US$5mn, with an interest rate of 10 per cent per annum, to fund AfGen’s working capital budget.

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