The two firms entered a deal to acquire 50 percent stake in three of the Africa Oil’s onshore exploration licences in Kenya and a further two in Ethiopia.
Speaking in relation the approval, Africa Oil’s President and Chief Executive Officer, Keith Hill said the transaction gives the firm business strength especially in as far as technical competences in the sector is concerned.
“We are very pleased to have received approval from the Government of Kenya. We feel Maersk will be an excellent partner in terms of technical and financial strength and experience critical to moving the development project forward. This transaction puts Africa Oil in the enviable position of not requiring any additional equity financing prior to first oil and will allow us to weather the current difficult oil price environment should it continue into 2016.” Hill noted in a statement.
In the transaction, Maersk will pay Africa Oil US$350 million as reimbursement for approximately 50% of past costs incurred by Africa Oil prior to the agreed March 31, 2015 effective date.