Bowleven terminates alliance agreement with Petrofac

Bowleven, the Africa focused oil and gas exploration group traded on AIM, has announced that it has reached a mutually acceptable agreement with Petrofac to terminate the Strategic Alliance Agreement.

This satisfies one of the conditions of the LUKOIL and NewAge farm-out transaction announced on 24 June 2014. The termination agreement is subject to completion of the farm-out.

Related: Lukoil, NewAge farm into Bowleven’s Cameroon offshore block

Under this arrangement Bowleven will pay $9 million to Petrofac upon completion of the farm-out transaction as full and final settlement and the Strategic Alliance Agreement shall terminate.

Kevin Hart, Chief Executive of Bowleven pic, said: “We have worked closely with Petrofac over the last two years and we appreciate their co-operation in reaching a mutually acceptable termination agreement.”